UNIVERSAL POSTAL SERVICES IN THE RUSSIAN FEDERATION: DEVELOPMENT, FINANCING, FUTURE PROSPECTS Head of the Federal Communications Agency Valeriy Bugaenko Forum on postal regulation Berne, Switzerland, November, 12, 2009 РОССВЯЗЬ Federal Law “On postal service” Equal rights for the population, regulatory authorities and business to access postal services Universal postal service serves to meet customers’ needs for the exchange of letter-post items at affordable prices throughout the territory of the Russian Federation” Guarantees «Art. 2. Basic concepts Equal rights for all operators of postal services to provide universal postal services Governmental regulation of activities in universal postal services 1 РОССВЯЗЬ GOVERNMENTAL REGULATION IN THE FIELD OF UNIVERSAL POSTAL SERVICES Uniformity of postal norms, standards, requirements and practices Ministry of Telecom and Mass Communications Approval of standard transmission time and delivery standards for UPS Federal Tariff Service Regulation of the universal postal rates The Federal Service for Supervision in the Sphere of Information Technologies and Communications Licensing in the field of postal service State control and supervision in the field of postal service Arrangement of the issue and distribution of the state postal prepayment indicia Federal Telecommunications Agency Assignment of the codes to the postal service entities of the Federal postal service organizations within the territory of the Russian Federation Production and usage of personalized items for federal postal service organizations Management of state-owned postal service organizations activities 2 РОССВЯЗЬ UNIVERSAL POSTAL SERVICE Urban population Rural population 25 % of post offices 38,7 mil people 75 % of post offices 203 licenses on UPS rendering 109,4 mil people 42 000 post offices 3 РОССВЯЗЬ PROBABLE WAYS OF UPS FINANCING Rise of income due to UPS volumes or tariffs increase Overall financing of designated postal operator by state Financial support of UPS from Universal service Fund Rise in UPS profitability by lowering of costs, postal infrastructure development, logistics improvement and new technologies implementation 4 РОССВЯЗЬ 2010-2013 POSTAL SERVICE INFRASTRUCTURE MODERNIZATION PROGRAM Main activities: • Creation of 28 automated sorting centers for postal items handling • Implementation of modern postal sorting equipment • Implementation of management and control systems • Implementation of resource-saving Realization of the Program will help to provide better quality of service and to level down loss ratio of UPS technologies • Renovation of vehicles fleet 5 РОССВЯЗЬ IMPROVEMENTS OF UNIVERSAL POSTAL SERVICE LEGAL REGULATION Directions Distinguish between the notions: “postal item” and “cargo”. Determine the liability of postal operators and cargo carriers Competitive climate. Legal protection of customers Provide and determine the procedure enabling postal operators to use the postal networks of other operators Monopoly elimination Issue and distribution of postal prepayment indicia. Decision on sanctions for the production and distribution of counterfeit postal prepayment indicia Provide additional state support and guarantees for UPS rendering Protection of State financial interests Quality of service improvement 6 РОССВЯЗЬ Thank you for your kind attention!