Advances in Regulatory Economics series
Edited by Michael A. Crew and Paul R. Kleindorfer
Chapter 5: The Future of the Portuguese Postal Sector and the Role of CTT
* Alberto Pimenta† and António Manuel Amaral‡ INTRODUCTION 1 The postal industry is at a decisive turning point. New information and communication technologies (electronic substitution) have been transforming the reduction in postal traffic into not a circumstantial but a consistent trend since the turn of the century, displaying an inexorable momentum accelerated by the recent economic crisis. According to recent studies, it is expected, in most developed countries, that the loss of postal volume will exceed 30 percent within a 5- to 10-year timeframe. The postal sector is on the verge of redefining its role within a changing economy. Most postal incumbents have invested in a diversification of business portfolios in recent decades with a view to reducing their dependence on mail. Although mail remains the core business for most operators, it is a fact that other activities, mainly parcels and financial services, are becoming particularly important to the economic performance of these firms. CTT is not indifferent to this inescapable movement for change in the sector: first, we still have our business anchored in the mail segment and, as we are the universal service provider (USP), we are racing to adjust for the imminent full liberalization. Second, we need to ensure a sustainable activity for the future. It is therefore essential to define a strategy for the sustainable growth of the firm and ensure the efficient provision of universal service obligations. In the context of preparing CTT for the next decade, thereby ensuring the provision of the universal postal...
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