The Infocomm Development Authority of Singapore (IDA) is seeking views from the industry and public on whether the Basic Mail Services market in Singapore should be liberalised, as well as the growth opportunities and service innovations that can arise if greater competition is introduced.
Singapore, 18 August 2006 | For Immediate Release
The Infocomm Development Authority of Singapore (IDA) is seeking views from the industry and public on whether the Basic Mail Services market in Singapore should be liberalised, as well as the growth opportunities and service innovations that can arise if greater competition is introduced. Basic Mail Services include the collection and delivery of letters and postcards, within, into and out of Singapore.
While competition already exists in the markets for Express Letter Services, printed paper (such as magazines and advertising brochures) and parcels, Singapore Post Ltd (SingPost) remains the sole provider of Basic Mail Services. SingPost's monopoly licence will expire on 31 March 2007.
IDA welcomes views from the industry and public on the best way forward for Singapore's postal sector, to ensure continued growth. The public consultation paper invites feedback on liberalisation of the Basic Mail Services market, the potential benefits to consumers and businesses, as well as a proposed set of licensing and regulatory frameworks that can be adopted if liberalisation takes place. In developing these frameworks, IDA seeks to ensure the maintenance of public confidence in the reliability and availability of Basic Mail Services, continued provision of these services, a seamless and transparent experience for mail senders and recipients, and fair competition.
Recent studies by IDA on Singapore's postal service sector show that postal service continues to play an important role in the economy as business transactions such as billing and mail orders remain reliant on efficient and reliable postal delivery. Liberalisation of the Basic Mail Services market can bring about more competitive pricing, and greater choice of services and service providers, especially to businesses, the largest group of users for postal services. Presently, businesses account for about 95 per cent of Singapore's total domestic mail.
In 2004, Singapore's postal services sector generated an annual revenue of more than S$1 billion1. Total mail volume2 has also been growing since the 1990s. With liberalisation of the Basic Mail Services market, IDA estimates a net benefit of S$13 million to S$31 million a year for end-users.
All views and comments should be submitted in writing to IDA by 12 noon (Singapore time) on 29 September 2006. IDA will then consider all submitted inputs before issuing its final policy decision. The public consultation paper can be downloaded from https://www.imda.gov.sg/, under the sections "Policy & Regulation", "Consultation Papers".
ISSUED BY CORPORATE & MARKETING COMMUNICATION DIVISION
INFOCOMM DEVELOPMENT AUTHORITY OF SINGAPORE
Editor's Note
1 Source: The Singapore Department of Statistics on "post and courier activities" for 2004.
2 Total mail volume includes ordinary letters, postcards and printed papers, but excludes express letters and parcels.
About Infocomm Development Authority of Singapore (IDA)
The Infocomm Development Authority of Singapore (IDA) develops, promotes and regulates info-communications in Singapore, with the aim of establishing the country as one of the world's premier infocomm capitals. To nurture an internationally competitive infocomm industry, IDA offers a comprehensive range of programmes and schemes for both local and international companies. For more information, visit https://www.imda.gov.sg/.
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