The different organizational models of postal markets were on the agenda of a worldwide forum on postal regulation, held today at UPU headquarters.
Against a backdrop of crisis, many countries are having second thoughts about liberalizing their postal services. One of the things that participants have been examining is ways of financing the universal postal service (UPS). Should it be nationwide? Should rates reflect costs? Should new charges be introduced? Should fees be paid to a fund managed by the regulator? Should quotas be set?
Over 200 participants discussed all these questions and more. Among those who took part were experts from Zurich University, the European Commission, the Argentine, Algerian, Belgian, Chinese, Russian and US Posts, along with representatives of the private sector such as ECORYS and WIK Consult.
The European Commission insisted on the separation of powers and the independence of the regulator for setting prices, monitoring quality of service and responding to market shortcomings. ECORYS argued for defining UPS financing as transparently as possible, to guarantee its future. Establishing postal banks, using a shared network with fixed costs or aligning rates to costs were three suggestions put forward. Abolishing standard rates was another.
There is not really a single solution. Different countries – with different geographical conditions, different approaches to postal reform and a different impact from the latest economic crisis – will react in different ways.
The Chinese Government said that they consider regulation to be a key to fair competition in the sector. The Assistant Postmaster General of the Chinese Post told the forum that some 24,000 supervisors see to the application of the UPS while licensing requirements for express delivery suppliers protect the rights of different businesses and raise the threshold of market access.
According to its representative, the Argentine regulatory authority no longer believes that the sector should be regulated by the laws of the market alone. Fully opened to competition, the Argentine postal service was handed over to a private company several years ago but in 2004 was returned to the state operator. The representative added that it is vital to introduce binding norms that respond to market needs.
Ruth Y. Goldway, Chairman of the Postal Regulatory Commission of the United States of America, emphasized the benefits of the two monopolies in her country, for mail and mailboxes. The yield on the two monopolies is the main counterbalance to the cost of UPS – some 3.5 billion dollars for deliveries six days a week.