Tag: Domestic

Congo government to bail out postal firm

Posted by | Jan 22, 2008 | |

The Congolese government plans to disburse six billion CFA francs (USD 13,523,563) to finance the recovery plan of the Congolese Posts and Savings Company (SOPECO), the Managing Director of the company, Guy Roger Mankedi, said here Monday.

The plan, to be implemented between 2008 and 2010, covers the computerization and extension of the firm’s service across the country and the modernisation of its payment system.

“These are important projects for which SOPECO should not be left behind. SOPECO must take on the moving train and that requires a lot of means,” Mankedi said.

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DMNews talks with Dan G. Blair, chairman, Postal Regulatory Commission

Posted by | Jan 21, 2008 | |

Q: How would you describe the PRC’s role in relation to the USPS?
A: The role of the PRC is to ensure transparency and accountability of the US Postal Service. As chairman, I exer¬cise day-to-day control over the adminis¬trative process of the commission, which comprises five full-time commissioners who are appointed by the President and confirmed by the Senate.
Q: Following the passage of the Postal Accountability and Enhancement Act of 2006, how has the role of the PRC changed?
A: Under the old law we were primar¬ily involved in rate adjustment cases in which there would be 10-month litigation. And the commission had to recuse itself from the outside world and not have contact with mailers or other parties. Now, under the new law, we’re transforming more into the role of a regulator with more oversight authority that gives us the ability to reach out more to the community. We now hear from individual mailers, nonprofit groups, magazine publishers. I want to encourage that, because our role requires that we have an open and continuing dialogue with the public as well as with the postal service.
Q: You just completed your first year as chairman. What were the PRC’s ma¬jor accomplishments in the past year?
A: When I came on in December of 2006, we were at the tail end of a rate case under the old law. We got that out about five days ahead of schedule. We also got the new rate regulations out in October of 2007, eight months early. That was significant because first, it showed we could get up and ready un¬der the new law rather than proceeding under the old law, and second, by get¬ting the new regulations effective sooner rather than later, it allowed the postal service to seek any rate increases under the new law rather than the old law.
I think everyone was well aware of the shortcomings of the old law. The new law gave the postal service a broad mandate and more flexibility to better act like a business, includ¬ing its rate-setting structure. The PRC is going to ensure that new rates that the postal service proposes are in compliance with the law. Con¬gress gave the postal service greater authority, but at the same time, it presented us as a counterbalance to ensure that the law is being obeyed.
Q: What’s next for the PRC in 2008?
A: We’ll issue our comments on the postal service’s annual compliance report at the end of March. I would also anticipate that the postal service will be coming in with a notification for proposed rate changes within the first quarter. But nothing’s formal yet.
One of the things that’s on the front burner is developing addi¬tional rules regarding complaint procedures. We’re working on ad¬ditional rules for data reporting re¬quirements for the postal service.
We still have two outstanding cases under the old law regarding negotiated service agreements that are proposed for two parties. We’re working to complete those.

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Postcomm takes first steps to split Royal Mail operations

Posted by | Jan 18, 2008 | |

Postcomm has set the ball rolling on a consultation which could lead to the eventual separation of Royal Mail’s collection and delivery operations in order to improve on current access agreements.

A consultation document was published yesterday to review the current framework allowing rival operators to use Royal Mail’s delivery arm. Earlier in the week, Postcomm proposed the principle of ‘wholesale equivalence’ which has already been adopted by Ofcom to reduce the burden of regulation on BT.

These moves stem from Postcomm’s Strategy Review which was launched in August 2007. As part of this review Postcomm has made a commitment to evaluate the current access agreements and identify and resolve any problems with the existing arrangements.

A letter was sent this week to all postal operators, organisations representing mail users and postal watchdog Postwatch asking for their views on how best to regulate the industry from 2010 when the current price control arrangement expires.

In the letter, Postcomm chief executive Sarah Chambers said: “We want to begin by taking a top-down approach, based on what we have learned from our Strategy Review. We want to consider whether adopting a different approach could allow a significant reduction in the scope of regulation, whilst maintaining sufficient protection for customer and operators in those areas where Royal Mail has substantial and enduring market power.”

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Postcomm launches access review consultation (UK)

Posted by | Jan 17, 2008 | |

The focus of the access review is the current framework under Condition 9 of Royal Mail’s licence and the operation of access agreements. This new consultation is the first phase of an access review and aims to identify what problems – if any – exist with the current access framework. Later phases will consider the remedies needed to resolve any problems, as well as how to implement them.

Notes for editors

On 15 January 2008, Postcomm published an industry letter setting out scenarios for the future of the price control and regulation, including how Postcomm intends to take forward work covering price regulation, wholesale equivalence, cost transparency and access. As part of that consultation, Postcomm wants to consult on how effectively current access arrangements (as established under Condition 9 of Royal Mail’s licence) are working. This follows on from a commitment made in Postcomm’s “Strategy Review: Emerging Themes” report, published in August 2007, in which Postcomm said it planned to undertake a wide review to determine how well access had operated to date and to consider whether the introduction of an Access Code could be an efficient way to address potential concerns regarding non-price forms of discrimination for access users.

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Splitting of Royal Mail operations proposed (UK)

Posted by | Jan 17, 2008 | |

Royal Mail’s postal operation could be split in two under proposals put forward by the postal regulator to increase competition and reduce the burden of regulation.

Postcomm has written to all postal operators, organisations representing mail users and Postwatch, the consumer watchdog, asking them for their views on five options for regulating the industry from 2010.

Two of the options involve the principle of “wholesale equivalence”, which would split Royal Mail’s collection arm from its delivery arm by creating separate business units. That would make it easier to eliminate cross-subsidies; ensuring competitors had equal access to Royal Mail’s network, which they rely on for final delivery to homes and businesses.

At present, equal access is ensured by regulating a range of Royal Mail prices, including what it charges competitors for final delivery. This means 77 per cent of the state-owned operator’s revenues are controlled by Postcomm – a split, it says, could reduce the proportion to as little as 15 per cent.

This would be similar to the approach adopted by Ofcom, the media regulator, to reduce the regulatory burden on BT by requiring it to separate its retail operation from Openreach, the wholesale arm that handles calls for other telecom companies.

Postcomm said a split was unlikely to be effective in creating a level playing field for competitors unless the two organisations were physically separated. The businesses would need different management incentives, for example, so that the delivery arm was encouraged to offer equal service to Royal Mail and competitors.

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