Improved postal service depends on open market, says ComReg
postal service and the provision of better value will only be achieved if An Post’s dominant position “does not foreclose” on the emergence of a fully competitive market.
The regulator’s chairman, John Doherty, said in a paper on the opening of the postal market to full competition in 2011 the challenge for postal operators is to “open the door and grasp the great opportunities” that exist.
Stating that the legal obligations on postal operators must be precise and unambiguous, he said monitoring and enforcement procedures in the market must ensure compliance on a timely basis by all operators.
Mr Doherty was commenting on the forthcoming transposition into Irish law of EU directives which will facilitate the full opening of competition in the mail market. While commercial users of the postal service can use operators other than An Post, this will in theory open the market.
ComReg wants the new legislation to set out a broad definition of the scope of the universal postal service – ie the service available to all parts of the State at all times. In that context, it said that the designation of a single universal service provider may not be appropriate in a liberalised market.
“The alternatives to designation are ‘market provision’ and ‘public procurement’. The two methods can be used in combination, with public procurement being used to fill in any gaps in market provision,” the paper said. It said licencing will be important to control entry to the market and exit from it and give assurance to users of the integrity of the operators.
“The directive continues the existing requirement that the tariffs for each universal service comply with the principles of ‘affordability’, ‘cost-orientation’, ‘nondiscrimination’ and ‘transparency’. A new requirement is that prices ‘give incentives for an efficient universal service provision’,” the paper said.
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