Year: 2005

Small fanfare for UK Royal Mail’s drop in B2B price

Posted by | Jan 10, 2005 | |

There was a luke-warm reaction to news that Royal Mail is to reduce its prices for business mailers. The move is part of the postal service’s plan to stave off the growing competition for its huge share of the B2B market. From April this year the cost of a first-class stamp will rise from 28p to 30p. Business mailers will receive a 1p discount on the 30p price if their mail is franked or uses a PPI (Printed Postage Impression) and weighs less than 60g. Discounts range from 3p to 8p for heavier items. “There are some reductions and small increases, which are likely to behave as a balancing act,” said David Robottom, director of postal affairs and industry development at the DMA. “Royal Mail is making its prices relate more to its cost, which we support,” he added. “We welcome any reduction in price, as long as the service improves.”

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FedEx Custom Critical launches surface expedite services for Mexico

Posted by | Jan 10, 2005 | |

FedEx Custom Critical, a subsidiary of FedEx Corp. is expanding its portfolio to include surface expedite services to and from Mexico. This service provides customers with time-specific freight deliveries to and from Mexico, the United States and Canada. FedEx Custom Critical provides the transportation services for the U.S. and Canadian portions of these shipments, with premium carriers in Mexico handling the exclusive-use transit south of the US border. “Extending our surface expedite capabilities into Mexico adds another dimension to the solutions we can offer our customers,” said Virginia Albanese, vice president of service for FedEx Custom Critical.

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KfW buys 12.7 pct Deutsche Post stake from German govt for 1.7 bln eur

Posted by | Jan 10, 2005 | |

The KfW Bankengruppe said it bought a 12.7 pct stake in Deutsche Post World Net AG from the government for 1.7 bln eur. Last Monday, the Frankfurter Allgemeine Zeitung reported that the government would transfer approximately a 12 pct stake in Deutsche Post KfW to KfW for 1.7 bln eur. KfW later confirmed it would receive a 12 pct stake, but did not disclose how much it would pay. The deal increases KfW’s stake in Deutsche Post to about 48.8 pct from 36.5 pct, it added.

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UK’s Post Office targets BT with new phone service

Posted by | Jan 10, 2005 | |

Royal Mail launched a home telephone service in a bid to steal customers from BT Group, the country’s former telecoms monopoly. Royal Mail said it hoped to sign up 1m customers, or about 5 per cent of BT’s residential business, to its own HomePhone service by 2008. The company is only the latest entrant into the UK’s domestic fixed-line market where BT’s dominance has been under attack in recent years from a string of new competitors such as Carphone Warehouse and Tele2.

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Austrian Post Office may be privatized, says holding company

Posted by | Jan 10, 2005 | |

The Austrian Post Office may be partially privatized in just over one year’s time, said the holding company for state industry OEIAG on Monday. OEIAG supervisory board chief Alfred Heinzel said in the newspaper Die Presse that up to 49 per cent of the Post Office could be sold on the stock exchange around May 2006. “Intensive work” was already being done for this, he said. There were two alternative plans. Fristly, between 25 and 49 per cent could be sold on the stock exchange, or secondly, 25 per cent could be sold to a strategic partner, and 24 per cent on the stock exchange. He did not say who would be the best strategic partner, but sources recently said the German Post Office would be an ideal choice.

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Postal watchdog angers UK Royal Mail boss with split suggestion

Posted by | Jan 9, 2005 | |

Britain’s postal watchdog is pressing for the carve-up of Royal Mail to encourage fresh competition into the market. Under Postwatch’s proposals, Royal Mail would be divided into two companies, with separate chief executives. The consumer watchdog has taken its cue from the gas industry, which has seen the creation of separate businesses owning pipes and billing customers. Under its plans for Royal Mail, Postwatch would like to see the state- owned company’s marketing operations split from the pipeline business, which includes sorting and delivery. It argues that splitting Royal Mail in two would ensure that the fee rivals pay Royal Mail to access its sorting and delivery services would exclude marketing costs. “This is not an anti-Royal Mail move, it is pro-competition,” a Postwatch spokesman said. “We have got to get transparency at Royal Mail, to know that there is no cross-subsidy between the businesses.” The watchdog’s proposals are set to increase tensions between the Royal Mail chairman, Allan Leighton, and the Postwatch chairman, Peter Carr.

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Vat plan may add 5p to cost of stamps

Posted by | Jan 9, 2005 | |

Postal regulators are calling on the government to levy Vat on stamps that could add 5p to the cost of sending a first-class letter. Documents released under the Freedom of Information Act show that Postcomm is in “negotiations” with the Treasury and the Department for Trade and Industry (DTI). The regulator believes the special exemption from Vat for Royal Mail stamps will have to be scrapped when the postal market is opened up to full competition next year. A reduced rate of 5% has been proposed but the European Commission may insist the full rate of 17.5% is levied, according to the papers. The exemption is not available to other mail companies hoping to enter the market so would prevent a level playing field. The EC is understood to be pressuring the government on behalf of European companies that are planning to start collecting and delivering British mail from 2006.

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