Liberalisation and the Future of Mail –

the German Case from a Supplier‘s Perspective

Monika Plum, Francotyp-Postalia

2

Postal Market: Business Environment and Trends

LiberalisationCompetition should lead to Divers product and solutions offering Choice between different providers Safeguard universal service offering

Technological Change Digitalisation Increasing internet penetration Networking Web-based services (Cloud

Computing)

Internationalisation Global economy needs global

communication Former domestic postal markets

open up

Cooperation and Strategic Alliances

Numberous specialised supplier / solutions

One-stop shopping for customers – complete service offering

CustomersCustomers

Postal operatorsPostal operators Postal marketsuppliers

Postal marketsuppliers

3

Letter Mail Market – Germany

Full liberalisation since end of 2008 End-to-end competition (~10% of the market) Downstream Access Competition (~8% of the market)

Letter Mail Volume GermanyLetter Mail Volume Germany

10%

- 4%

Source: based on BNetzA, Annual report 2010

4

Future of mail?

source: UPU data, estimates based on UPU, postal operators, FEPE

- 20% minimum

- 40% worst case

World Business Mail Volume - ProjectionWorldwide per dayWorldwide per day

~ 1,2 bn. letters

~ 250 bn. e-mails (90% spam)

~ 3 bn. requests

~ 2 bn. Videos

~ 660 Mill. users

~ 1,2 bn. letters

~ 250 bn. e-mails (90% spam)

~ 3 bn. requests

~ 2 bn. Videos

~ 660 Mill. users

@

Mail volume decline 2009 - 10Mail volume decline 2009 - 10

Source: ÖPAG, European Postal Services 2011

5

Extension of the Postal Value Chain

Traditional postal value chain

Collection TransportOutward Sorting

Inward Sorting

Delivery

Document-creation

AddressManage-ment

Print

Inserting

Franking

CollectionConsoli-dation

Transport/sorting

Delivery Inbound mail Archiving

Response Manage-ment

Integrated mail industry value chain

physical … hybrid … electronic

6

From Physical to Electronic Mail

Hybrid Mail

classical letter mail

Reverse Hybrid Mail

Sender

elec

tro

nic

ph

ysic

al

electronicphysicalRecipient

E-mail

Secure e-mail

E-signature

7

De-Mail: the German Government Initiative

A secure communication infrastructure -

As simple as e-mail, as secure as conventional mail“

Legislation sets the framework and standards for De-Mail De-Mail: Sending and receiving secure electronic mail (obligatory) De-Ident: Identity service (optional) De-Safe: Electronic Archive (optional)

Business Community implements De-Mail Legally regulated accreditation and certification process for De-Mail providers Interoperability between De-Mail providers

8

De-Mail - Advantages Compared to E-mail

Citizens

Businesses

Public Authorities Banks/ Insurance companies

Who is the sender / recipient ? Secure authorisation process

Is communication confidential? Communication transport is encrytped Optional end-to-end encryption

Is communication reliable? Delivery options like conventional mail:

registered, delivery confirmation, confirmation of receipt

Legally valid!

„A legally certified web in the web“

9

@

SenderSender RecipientRecipient

Public AuthoritiesPublic Authorities

ConsumersConsumers

BusinessesBusinesses

Public AuthoritiesPublic Authorities

ConsumersConsumers

BusinessesBusinesses

Hybrid MailHybrid Mail

The Future of Mail: Customers Require a Multichannel Strategy

10

The Supplier‘s Perspective: FP-Strategy into the Digital World

Hybrid Mail

Classical letter mail

Reverse Hybrid Mail

Sender

elec

tro

nic

ph

ysic

al

electronicphysicalRecipient

E-Signature

ELDOC

11

For further information:For further information:

www.francotyp.comwww.francotyp.com

www.internet-access.dewww.internet-access.de

www.freesort.dewww.freesort.de

www.mentana-claimsoft.dewww.mentana-claimsoft.de

Dr. Monika Plum Market ResearchBusiness Development

Fon: +49 -3303-525 973 E-Mail: m.plum@francotyp.com                                        Francotyp-Postalia GmbHTriftweg 21-26, 16547 BirkenwerderGermany

Many thanks for your attention!