TNT announced today that its Dutch mail division, TPG Post, will increase its rate for single-itemdomestic letters up to 20 grams by 12% from €0.39 to €0.44 with effect from 1 January 2007. It is
the first increase in the standard stamp price for five years and no further increase is planneduntil 2010. At the same time, TPG Post will reduce rates for heavier letters in the 250-500 gramand 500-3,000kg categories.TNT pointed out that the rate for letters has not risen since 2001. The newly announced rates(12.1% average increase) mean that the increase will remain within the inflation rate of 12.5% onaggregate since 2001. With a stamp price of 44 euro cents TPG Post will continue to offer thelowest price for a 24-hour service in Western Europe and the best price-quality ratio in Europe.
TPG Post operates in a dramatically changing market, TNT said. In 2001 the company developedits Cost Flexibility Master Plan. This plan is essential to positioning the company in such a waythat, in the period up to year-end 2012, it will be able to absorb the expected decrease in volumecaused by substitution of postal items by e-mail and the increasing competition. The Master Planincludes reorganisations at Operations, Marketing & Sales and Overhead. Between 2000 and 2006,TPG Post saw 9.000 job cutbacks and, in consultation with the trade unions and works councils, TNTN.V. is presently considering additional cost-saving measures.
The rate for single-item mail between 250 and 500 grams will be reduced from € 2.25 to €2.20. The rate for heavier postal items (5.00 to 3.000 grams) will fall from €3.00 to € 2.64. Inaddition to domestic letter rates, those for franking machine mail, registered mail andinternational mail and parcels will also change. All business customers of TPG Post will beinformed as usual in October 2006 of the rate changes for business mail.
Each year an average household in the Netherlands spends approximately € 26.00 onmail-related products and services (stamps, Christmas mail, international mail and parcels). Theannounced rate change will result in an average increase of less than € 2.00 per household peryear. The rate increases have passed through OPTA and this regulatory body has confirmedthat these fall within the maximum levels allowed by law.
