Final hurdles cleared for full postal competition
EU Governments last Monday ended years of debate and controversy when they agreed to fully liberalise postal markets across the EU from 2011. The move means that in most countries any operator can carry letters of any weight from 2011. The industry accounts for about 1% of EU GDP and 1 million jobs. Some countries had already liberalised their services unilaterally (notably the UK and Sweden). However, the main stumbling block in negotiations for an EU-wide agreement had been the impact of liberalisation on the need to maintain a universal service. Concerns were raised over the impact of liberalisation on the price, frequency and quality of service, particularly to outlying regions. The final agreement provides states with some flexibility about how they ensure continued universal service under acceptable conditions.
Frontier (London) advised the French postal regulator, ARCEP on the likely impacts of liberalisation on the business mail market. Frontier also considered the impact of different access regimes, the impact to-date of liberalisation in Europe and the lessons arising from liberalisation in the EU and elsewhere.
Frontier (London) is also a member of the Panel of Advisors for the UK postal regulator, Postcomm. In that capacity, Frontier has provided extensive advice throughout the liberalisation process in the UK. This has combined insights into how to introduce competition with when, where and how regulation is appropriate. Frontier (London and Cologne) is separately advising another European government on postal liberalisation and universal service.
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