Postal market offers further opportunities for growth

Kurth: "New mail services will change the market"

The Federal Network Agency today presented its Activity Report 2008/2009 on the postal sector. The annual turnover achieved in the German postal market now totals roughly € 27bn. In 2009 also the postal sector was affected by general economic conditions. However, the economic upturn gives rise to hopes that market players will face more favourable prospects and new growth opportunities.

The market for courier, express and parcel services continued to grow in the past two years and in 2008 totalled about € 17bn. Due to greater competitive intensity, customers are offered a wide range of services.

Competitive conditions in the mail service market have remained unchanged since the market was completely opened up to competition at the beginning of 2008. The 750 primarily small competitors have not been able to extend their business potential in the last few years. Their market share of 10 per cent remained constant in 2008. For 2009, a more bullish market is expected.

The Federal Network Agency was able to ensure continuity on the basis of ex ante price regulation. During the last two years the rates charged by Deutsche Post AG for single domestic letters have remained stable. They will continue to remain stable in the forthcoming year. In view of general price rises, this stability offers consumers direct benefits.

In the next few years the full-scale introduction of electronic mail services is expected to have a far-reaching impact on the letter market. These products which are expected to become available in the near future are also designed for residential customers and will be able to link electronic posting with the delivery of the printed letters. As a variant, a pure Internet letter is envisaged, entailing paperless and at the same time secure electronic conveyance.

"All in all, new products in the letter market offering extra choices will change and stimulate the market. I appeal to the consumers to examine more closely existing possibilities for changing postal service provider. This applies both to residential and to business customers who do not yet take advantage of the opportunities available to them", stated Matthias Kurth, President of the Federal Network Agency.