Liberalisation of the Postal sector is on its way, at least In Europe. Decided in principle by the member states in 1997, the liberalisation is now officially adopted through the third postal directive, imposing most of the member states to open their postal market to competition at the latest end of 2010, with exceptions mainly for the new member states, where the postal market should be opened at the latest end of 2012.This directive was adopted after a PwC Impact study on Universal Service of the Full Market Accomplishment of the Postal Internal Market in 2009, published on the website . This liberalisation will have a dramatic impact on the incumbent postal operators. The universal service provision won't be funded anymore by the profit making reserved area.The postal operators will have to increase their efficiency and quality in order to keep enough market share to maintain economics of scale. Service offering and prices shall have to evolve to better reflect customer needs. Regulation will have to move from price control avoiding cross-subsidisation to searching a balance between allowing market entry and maintaining universal service provision, possibly with public or sector funding. Some member states started that evolution years ago, postal markets are open in a few cases, others still have to prepare themselves. After the transition period, it even might be expected that the sector will be totally deregulated, moving to normal competition law. This evolution often implies that the privatisation of the postal operator, whether partial or total, will give the commercial freedom requested to face competition, and allow cross-border alliances and consolidation, as was the case in other network industries.

How PwC can help you

PwC can work with you to:

  • estimate the cost of universal service obligation , today , after best practice efficiency improvements and with competition
  • setting up regulatory cost accounting
  • develop a performance improvement programme
  • restructure the network
  • elaborate business plans for developing new products and services
  • measure the quality of mail delivery, and recommend improvements
  • define an adapted regulatory framework
  • prepare all forms of privatisation, merge, acquisition
  • manage the change