DX scraps door-to-door delivery plan

DX Ireland has scrapped plans to enter the door-to-door mail delivery market in Ireland.

It took the decision following the publication of new research yesterday showing serious restrictions to private competitors entering the market are still in place.

DX Ireland carried out the research to determine the state of the market and found An Post still retains a strong overall grip.

While the group has operated in the business end of the market for the past nine years, it said yesterday it has abandoned plans to enter the other key segment of the postal service — pending a radical shake-up.

Managing director of DX Ireland Kevin Galligan said: “Our feasibility study clearly finds that we need full liberalisation of the Irish postal market before we can consider offering a door-to-door service. We have advised the Minister for Communications, Marine and Natural Resources Noel Dempsey of the results ... and have urged him to confirm the date of full liberalisation as soon as possible”.

The key barriers are:

Only 40% to 50% of the total postal market is open to competition.

The common perception that An Post is confined to uniform pricing is untrue — the legislation allows the market leader to conclude individual agreements on prices with customers.

DX fears that introduction of a new mail delivery service would be disadvantaged by below cost price discounts from An Post.

An Post may apply to the courts to prohibit the provision by any company of postal services reserved to An Post.

Whilst the EU Postal Directive promotes 1 January, 2009 as the indicative date for full liberalisation of the EU postal market, this provision has not been incorporated into Irish law.