German letter prices will remain unchanged in 2007 in the run-up to full market liberalisation inJanuary 2008. Deutsche Post has decided to hold prices for its main domestic mail products
unchanged for next year, the fourth year in a row with stable prices for key products.The pricing system for international letters will be further simplified, and prices for basicinternational letter and postcard products will also remain the same. There will be a slightincrease in price only for Maxibrief items and letters at kilo rates, which are used primarily bybusiness customers. Deutsche Post’s price application for 2007 has now been approved by the GermanFederal Network Agency, which is responsible for postal pricing regulation.
Deutsche Post said that by retaining the prices for its domestic basic products, it issetting a clear signal for price stability since statutory guidelines relating to the price-capprocedure would have permitted total price increases of some EUR 30 million. Only minimal use isbeing made of this opportunity, however.
Following a reduction in 2003, the prices for standard letters and postcards will thus remainstable for the fourth year in a row with the same consistently excellent transit times, DeutschePost said. Certified quality measurements have shown that of 100 items posted within Germany beforethe final emptying of the respective mailbox, 95 reach their recipients on the next working day.That figure based on certified quality measurements makes Deutsche Post one of the leaders ininternational comparison while the company remains in a mid-field position regarding the pricelevel across Europe.
Beyond statutory price regulation, VAT-related price changes will be necessary for servicessubject to value-added tax such as the redirection and storage service. Updated price informationwill be made available to customers at Deutsche Post retail outlets well before the new prices gointo effect.
In reaction, the German International Express and Courier Services Association (BIEK) calledon the Federal Network Agency to review its approval for Deutsche Post’s 2007 letter prices. Theassociation claimed that the German national postal operator was effectively subsidising letterprices through high profits from its domestic mail monopoly.
