State contract preserves Magyar Posta monopoly
The state of Hungary has signed a contract with Magyar Posta ensuring the company keeps its monopoly on the delivery of official letters and the issue of stamps in communities with more than 1,000 residents, business daily Világgazdaság said on Thursday. Magyar Posta will be compensated for any losses it makes on the services from the central budget under the contract which runs until the end of 2020, the paper said. Hungary's postal market was deregulated from the start of 2013. Feibra, a unit of the Austrian Post, applied for a license to enter the market for delivery of letters under 50 grams in January. But Hungary's National Media and Infocommunications Authority (NMHH) said in April that the company had failed, so far, to meet all legal requirements. Austrian Post CEO Georg Polzl said in March that Magyar Posta “clearly has the advantage” under the law on the market's deregulation. “It is as if Austria would draw up legislation that allows only public servants to deliver letters,” he added. Feibra already leads Hungary's direct mail market, according to its website.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.