Tag: Europe

Deutsche Post rejects proposal to relax letter mail licence

Calls by two federal states for the letter mail market to be opened up early put nationwide provision of postal services at risk, says Deutsche Post. Deutsche Post has soundly rejected the calls made by the German federal states of Hesse and Lower Saxony for the exclusive letter mail license to be relaxed early, saying that the frequently repeated claims that the current legal situation is hindering competition and is putting customers at a disadvantage do not reflect reality and are politically motivated.

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UK Postcomm consults on a long term licence for Mail Plus

Postcomm on 2 December 2004 began a consultation on the proposed issue of a long term licence to Mail Plus Ltd to provide bulk mail and consolidation services. Today’s document says that Postcomm is minded, subject to consultation, to grant a licence to Mail Plus. It suggests that the proposed services will have no appreciable adverse effect on the provision of a universal service throughout the UK and will further the interests of users by promoting competition between postal operators. If issued, the licence will contain a requirement for Mail Plus to maintain separate accounts for its UK licensed business to show that it is not being unfairly cross-subsidised by its parent company, La Poste.

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UK Royal Mail sell-off wins go-ahead, says paper

Royal Mail Chairman Allan Leighton has won a private pledge from the government that he can partially privatise the state-owned postal service, the Financial Mail on Sunday has reported. But the Department of Trade and Industry denied there were any such plans. “We have no plans to privatise the Royal Mail,” said a department spokeswoman. The paper said the privatisation deal was the price Leighton demanded to stay on for another three years. On Thursday, the government said Leighton will serve a further three years as chairman of the Royal Mail, until March 2008. Leighton has been given the green light to hand 20 percent of the business to postal workers, and sell off 31 percent on the stock market for about 4 billion pounds, but this will put him on a collision course with the Communication Workers’ Union, the paper said.

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UK postage prices to change to reflect costs of handling mail

The price of a basic First Class stamp will go up from 28p to 30p from 7 April 2005, Royal Mail confirmed today. Many business mail services will see very much smaller increases and, in some cases, real decreases, as Royal Mail takes the first steps toward rebalancing its prices to reflect actual costs and prepares for full competition in the market. The basic rate for Second Class mail will remain at 21p for all customers and overall the price of postage for 40% of Royal Mail’s daily mailbag of some 83 million items will not change.
Royal Mail’s Chief Executive Adam Crozier said that with the UK mail market potentially fully open to competition from January 2006, it was essential that Royal Mail’s postage prices started to reflect the true cost to the company of collecting, sorting and delivering mail. Mr Crozier also said that the current system under which some customers cross-subsidise others could not continue in an open market.

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