Select Committee on Trade and Industry Written Evidence


Annex C

UNIVERSAL POSTAL SERVICE AND FULL MARKET OPENING

EXPERIENCE OF MARKET OPENING IN EUROPE


Country
Experience
Full market opening

UKFrom 2003 licensed operators able to offer
"end-to-end" services to customers mailing over
4,000 items. In 2004 Royal Mail agreed the price for licensed operators offering consolidation services.
1 January 2006
SwedenCompetition has emerged in relation to pre-sorted mail (Citymail—3-day service) and small niche operators (many ex-Sweden Post).
Already fully open—1993
FinlandLicensing regime is main stumbling block to development of competition. E-substitution is main competition to mail services.
Already fully open—1994
NetherlandsDirect mail market has been open since 1990s. Sandd (5% of market) and Selekt Mail (3%) are main competitiors in addressed bulk mail.
2007
GermanyCompetition in relation to "high-quality" services
(eg timed delivery) and now consolidation.
2007
Norway
(EEA country)
Competition in unaddressed mail (Norpost) one day a week.
2007
SlovakiaCompetition in unaddressed mail.
2007
DenmarkMoved to 50 grams in January 2005—a year ahead of EU requirement.
SpainCompetition has existed in local intra-city mail since late 1960s.
EstoniaCompetition in direct mail.
Already fully open


  The incumbent postal operators in all of these countries still have well over 90% of the postal market.

  In 12 of the 25 Member States the reserved area is now substantially less than the minimum level required by the Directive (100 grams)—particularly in relation to direct mail.

  The EC estimates that 75% of letter post weighs less than 50 grams. Only about 7% of letter post items fall into the 50-100 gram weight category that is required to open up on 1 January 2006.

  The four largest operators (in Germany, France, UK and Netherlands) control over 59% of the total Community postal services market. The EC estimates that Germany, the Netherlands and the UK will between them open 48% of the EU letter market from 2007.

  Source: 2004 WiK and Ecorys studies for European Commission on European postal market.



 
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