Tag: Domestic

Brunei Post: Email to Relegate Postals to History? No Way

Posted by | Dec 3, 2007 | |

The future of traditional postal services, over the past decade at least, is looking glum due to the increasing popularity of more convenient and quicker methods of communication.

During its prime, the Department of Postal Services handled over 22 million mail items annually from 1990 to 1995. The number has significantly lower in the last six years. In 2001 the department handled 13,245,798 pieces of mail, which includes letters, registered mail and postcards. A year later the figure fell to 10,439,846 and dropped to 9,390,420 in 2003, a six-year low.

There was an increase however to 9,735,119 pieces of mail in 2004, to 11,455,588 in 2005 and 11,524,555 in 2006.

Bolhassan believes however, that postal services will not be deemed obsolete just yet.

The department has given greater attention to business mail and is planning to provide its customers with new value-added services. One of these newly added services is hybrid mail, which enables government agencies, corporate clients and other bulk mailers to post monthly notices and bills.

Launched earlier at the opening of the new Mentiri Post office, the hybrid mail service allows an increased volume to be sent to customers, thus saving time and money.

In addition, the department is in the process of installing an automation counter to all 24 post offices throughout the country for the convenience of its clients. Through these automation counters, the public will be able to pay their water, electricity and telephone bills as well as renew their driving licenses and road tax.

According to Bolhassan, the department, under its Client’s Charter, promises “J+1”, which means delivery by the next working day.

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Postal Market liberalised in 2011

Posted by | Dec 1, 2007 | |

Member states have reached a compromise deal to liberalise postal services in the EU by 2011, following more than 20 years of Commission-led negotiations to open up the sector.

The deal includes the following main elements:

1) Full postal liberalisation by 2011 (instead of the Commission’s preferred date of 2009), including for letters under 50 grammes;
2) The possibility of delaying opening markets until 2013 for Cyprus, Czech Republic, Greece, Hungary, Latvia, Lithuania, Luxembourg, Malta, Poland, Romania and Slovakia;
3) Under a so-called reciprocity clause, member states that open their markets by 2011 can deny market access until 2013 to those member states that choose to delay liberalisation;
4) Minimum pay provisions and postal workers’ right to strike will not be affected by the law;
5) Universal Service Obligation (USO) – member states can dictate uniform tariffs between rural and urban areas, sufficient access to post offices and minimum delivery requirements.

Financing provisions for USO will be decided by member states, who can either fund the service with monies from state coffers or oblige operators to pay into a common fund. The Commission, which reserves the right to scrutinise the financing plans, will be required to help member states to calculate the cost of universal services.

The UK, Swedish and Finnish postal market have been opened entirely already. The German market will be opened by 1 January 2008. The German government has indicated several times to stick to that date.

Overall in the EU, postal services are estimated to handle 135 billion items per year, reflecting a turnover of about € 88 billion or about 1% of the EU Gross Domestic Product (GDP). About two-thirds of this turnover is generated by mail services. The reminder is generated by parcels and express services which are already in the competitive area (i.e., the market is fully open to competing operators).

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TNT gains most in two years on speculation about market opening

Posted by | Nov 30, 2007 | |

TNT NV, Europe’s second-biggest express-delivery company, rose the most in two years in Amsterdam trading following speculation the Dutch government may delay plans to open its mail market.

TNT shares rose as much as 1.24 euros, or 4.6 percent, to 28.10 euros, the biggest increase since Dec. 6, 2005, and were up 4.2 percent as of 11:51 a.m. The stock has fallen 14 percent this year.

An agreement reached by Germany’s coalition government to introduce a minimum wage for postal workers means the Dutch government may “pull the ’emergency brake’ on its market liberalization,” Andrew Beh, an analyst at Bear Stearns in London, said in a note to investors today.

TNT is scheduled to lose its monopoly on mail delivery in the Netherlands starting in January under measures approved by the country’s parliament in June. The opening is tied to a “level playing field” in Europe, which means it may be suspended if other European countries take measures that could hurt competition.

A suspension of the Dutch market opening would remove any “immediate” threat to the company’s mail volumes and earnings before interest and taxes at the mail business, JP Morgan analyst Damian Brewer said in a separate note to investors.

European Union governments agreed on Oct. 1 to require member countries to open up their letter-delivery markets to competition no later than 2011. Eleven of the EU’s 27 member states don’t have to liberalize their markets until 2013.

Standard letters are two-thirds of the EU’s 88 billion-euro postal market and offer twice the profit margin of packages and express mail, according to the European Commission, the Brussels-based EU executive arm.

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Poor postal results hit Scotland

Posted by | Nov 30, 2007 | |

Postwatch Scotland said that this summer’s strikes and widespread flooding seriously affected the quality of postal services across the UK.

Dundee, Falkirk, Kirkcaldy, Edinburgh, Perth and Motherwell were in the worst 20 performing postcodes.

Royal Mail said the low quality of service results were due to the industrial action.

Speaking after Royal Mail’s release of their half-year performance results, Alan Alexander, chair of Postwatch Scotland, said: “Given the floods and the industrial dispute, customers will not be surprised that Royal Mail’s performance has been seriously below par during the summer.

Next year, customers in Scotland should expect Royal Mail to be announcing a much improved performance

“It is particularly disappointing that six out of the worst 20 performing postcode areas for the delivery of first class mail are in Scotland.

“Industrial peace between Royal Mail and the Communication Workers Union means the industry, after a step backwards, can take great strides forward.

“Next year, customers in Scotland should expect Royal Mail to be announcing a much improved performance. That should help all of us to post with confidence.”

A Royal Mail spokeswoman said the low quality of service results in Scotland were due to the official and unofficial industrial action which took place during this period.

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Royal Mail fights back over zonal pricing plan

Posted by | Nov 29, 2007 | |

Royal Mail has mounted an aggressive defence of its proposed zonal pricing scheme, claiming Postcomm’s rejection of its original plan was ‘fundamentally flawed’.

The 44-page response comes five months after Postcomm threw out the first proposal (precisionmarketing.co.uk) but includes only a few minor amendments. Royal Mail is sticking to its guns – the main tenet of its argument is that increased competition in the postal market is allowing private operators to cherry-pick areas where it is cheaper, and therefore more profitable, to deliver mail.

It has put forward a strong legal argument, claiming Postcomm has not “undertaken a competition economics assessment of the application” and that its stance is “inconsistent with EU and UK competition law on discriminatory behaviour”. It continues: “This is a fundamental flaw in Postcomm’s consultation proposal which Royal Mail believes is legally incorrect.”

Under zonal pricing, brand-owners will pay more for deliveries of items in many rural and some urban areas. Royal Mail maintains that the move is in line with its aim to make its services ‘cost-reflective’.

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