DHL 1999 Annual Report Download - page 22

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The conveyance of letter items up to the follow-
ing weight limits is currently reserved for nation-
al post offices:
Current law stipulates the end of the letter mail mono-
poly in Germany on December 31, 2002. The exclusive
license area in Germany is already much smaller and
more restricted than the EU Directorate General re-
quires.Unrestricted competition already exists for letters
in excess of 200 grams.The market for direct mail items
weighing more than 50 grams has also been liberalized.
Further, several exceptions have been granted in the
reserved area which make it increasingly possible for
competitors to operate in the exclusive license area.
Over 500 licenses have been issued to rival companies
by the regulator, providing an indication of today’s
increasingly tough competitive conditions. Deutsche
Post World Net expressly welcomes this competition.
We are not, however, fully convinced of the legitimacy
of some of the decisions to issue licenses and are there-
fore initiating legal action in such cases.
We view liberalization, Germany’s role as forerunner
and the competition it generates as an opportunity.
In the spirit of maintaining a level playing field, steps
must be taken to ensure that distortions do not develop
in individual markets.A number of member states have
not yet fully implemented the targets laid down by the
EU Directorate General.We consider it very important
that liberalization be harmonized in all EU member
states,in the spirit of maintaining a level playing field in
line with the Treaties of Rome.
3.2. Ordinance Concerning Universal Services for
the Postal Sector
The Ordinance Concerning Universal Services for the
Postal Sector (PUDLV) which took effect retroactively
on January 1,1998 and the Ordinance Regulating Postal
Tariffs (PEntgV) which went into effect in December,
1999 established greater planning security for the uni-
versal provision of postal services and detailed the
regulations governing the amounts that companies oper-
ating in postal markets can charge for their products
and services. Deutsche Post World Net is the only com-
pany in Germany that provides comprehensive,
nationwide universal service that meets the product and
quality standards set out in the PUDLV. The German
government implemented the provisions stipulated by
the EU’s Postal Service Directive through its Postal Act
and supplementary regulations.
The most important parameters set forth in this legis-
lation,i.e.obligations Deutsche Post must meet:
• Product parameters:
Conveyance of letter items up to a maximum
of 2 kg throughout Germany, conveyance of parcels
up to a maximum of 20 kg throughout Germany,con-
veyance of express letters, registered letters, insured
letters and insured parcels, COD, conveyance of news-
papers and magazines
21
Management Report
EU Postal Service Directive: Letters up to 350 g
* EU Directive has not yet been implemented
1350 g proposed; bill has been submitted,
scheduled to take effect on July 1, 2000
2100 g proposed; bill has been submitted,
scheduled to take effect on July 1, 2000
3350 g + 1/2lb, proposed; bill has been submitted,
date that it is to go into effect still unclear
As of M arch 2000
Germany (no limits on competition
after January 1, 2003)
200 g
U.K.
(no weight limit)
1lb3
Denmark250 g
Belgium, France, Greece, Italy,
Austria, Portugal, Spain
350 g
Netherlands*500 g 2
Luxembourg*2.000 g1