Post faces CYP 50.000 fine

… as monopoly on small mail scrapped from 2009

 

The Telecom and Post Regulator has decided to impose a CYP 50.000 or EUR 87.500 fine on the Postal Service for not providing the foreseen quality levels and regarding the delivery time of mail.

The decision to penalize the Cyprus Post for the infringement of the quality standards for universal postal services is relevant according to Telecom and Post Regulator Vasos Pyrgos who revealed that in 2004 the fine imposed on the Post service amounted to CYP 10.000, which was raised in 2005 to CYP 20.000 in 2005 and now for 2006 the fine has been raised to CYP 50.000.

According to the relevant legislation, the percentage of delivery of inland correspondence, A’ priority, should be 90% after the first working day and 97% after the third working day from the date of posting.

For delivery of foreign mail, A’ priority, should be 85% after the third working day and 97% after the fifth working day from the day of posting.

Pyrgos said the Postal Service is well behind efforts to meet increasing competition likely to emerge after postal markets in member states are fully liberalized from January 1, 2009.

According to Pyrgos, the monopoly on packages or letters below 50 grams weight will be fully scrapped from 2009 and the market fully opened, which means that the Cyprus Post will be facing loss of business seriously affecting its prospects.

The Telecom and Post Regulator’s Annual Report for 2005 reveals that 12 companies were active in providing postal services outside the scope of the universal service, particularly for international couriers and express service.