IME: Liberalisation of postal services sector moves too slow

The liberalisation of Bulgaria's postal services sector is already underway, but progress is too slow, according to a research of the Institute for Market Economics (IME), presented in Grand Hotel Sofia. Restructuring of the monopolist Bulgarian Posts presents the greatest challenge, for the most part because of its inherent obligation to deliver nation-wide comprehensive postal services (CPS). Yavor Alexiev from IME says this business model makes it difficult to optimise operations and company structure since the monopolist is currently unable to offer alternative forms of performing CPS that comply with the Communications Regulation Commission's requirements.

Officials from the association of postal services operators, counting Bulgarian Posts among its members, pointed out another major problem - the insufficient amount of preparatory work in terms of rules and regulations in the last few years in order to set the stage for the liberalisation of the sector.

IME's report identifies two trends that have been sources of big shifts on the postal services market in recent years. First, information technologies are increasingly depressing the volume of traditional postal services, correspondent's orders and letters in particular bearing the brunt of the hit. On the other hand, the advance of electronic trade suggests an ever greater demand for courier services. A big jump in these can be expected next year, participants in the discussion said.

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