The Irish Commission for Communications Regulation (ComReg) has published Frontier (Europe)’s summary report, which reviews and assesses whether An Post’s terminal dues agreements on inbound international mail comply with Section 29 of the Communications Regulation (Postal Services) Act 2011. Terminal dues are the rates paid by one postal operator to another to deliver international inbound mail items.
Specifically, Frontier assessed whether:
- An Post’s terminal dues are fixed in relation to the costs of processing and delivering incoming cross-border mail;
- the levels of remuneration are related to the quality of service achieved; and
- terminal dues are transparent and non-discriminatory.
The research found that An Post has been incurring significant losses relating to international inbound mail. For example, An Post made a loss of €13.4 million in 2013 and €14.8 million in 2014. These losses on international inbound mail account for almost 40% of losses on An Post’s provision of the universal postal service. However, these losses can be expected to reduce over time if An Post meets its required efficiency targets as set out in their 2013 price control.
Frontier (Europe) regularly advises clients across Europe on postal regulatory issues.
For more information, please contact Saskia Nett on S.Nett@frontier-economics.com, or call +44 (0)20 7031 7000.