Key Benefits:
The Autorité de régulation des communications électronique et des postes,
Considering Directive 97 / 67 / EC of 15 December 1997 on common rules for the development of the Community's domestic market for postal services and the improvement of the quality of service;
Considering Directive 2002 / 39 / EC of 10 June 2002 amending Directive 97 / 67 / EC with regard to the continuation of the opening to competition of the Community's postal services;
Based on the post and electronic communications code, including articles L. 5-2-3, R. 1-1-10 and R. 1-1-13 ;
Considering the Memorandum of Understanding State / Press / Poste du 22 juillet 2004 ;
Considering the Memorandum of Understanding State / Press / Post office of 23 July 2008;
Considering the file describing the characteristics and prices of a new SU Press offer, received on 6 October 2008;
Considering the additional information sent by La Poste on 5 November 2008;
After deliberating on 9 December 2008,
Article L. 5-2 (3°) of the Code of Posts and Electronic Communications states that the Authority for the regulation of electronic communications and posts "[...] is informed by the provider of the universal service, prior to their entry into force [...], of the rates of benefits of the universal service not reserved. She can make her opinion public."
In accordance with section R. 1-1-10 of the Post and Electronic Communications Code, La Poste informs the Autorité of the substantial amendments to the catalogue of the services of the universal service when they relate to emigrated shipments and informs the Minister responsible for the posts and the Authority of the amendments to the catalogue on the number of sending services.
Article R. 1-1-13 of the Post and Electronic Communications Code states that "The Post provides the Electronic Communications and Post Control Authority at least one month before they enter into force any useful information on the tariffs of non-reserved services under universal service."
Pursuant to these provisions, La Poste submitted to the Authority on 6 October 2008 for implementation on 1 January 2009, the characteristics and rates of a new universal service offering for newspapers and periodical publications, corresponding to the commitments made in the State-Presse-La Poste Memorandum of Understanding of 23 July 2008.
I. ― Context
In January 2008, the Government entrusted Mr.Marc Schwartz with a task of reflection and proposal regarding the delivery of press subscriptions by postage or by porting.
A progress report was first presented, including an assessment of the previous agreement, Paul Agreement, signed on July 22, 2004, regulating the framework of the tripartite relationship until December 31, 2008.
This mission led to the signing of a memorandum of understanding on July 23, 2008 running over a seven-year period from January 2009 to December 2015. This new agreement is not only part of an objective of information pluralism but also of the prospect of full openness to the competition of the postal market by 2011.
This Memorandum of Understanding has retained a track to increase the rates of benefits offered under the public service for the transport and distribution of the press in addition to inflation. It states that the State continues to compensate for the cost of the public postal service mission, although this contribution is decreasing until 2015. It states that La Poste and publishers conduct joint industrial actions to optimize the transport and distribution of the press.
Finally, the agreement provides for the creation of a universal service rate for press publications that will apply as of January 2009. More specifically, it is stated that "The Post Office will offer to the Minister responsible for Posts an offer listed in the universal service catalogue, for press publications, covering the entire territory, at an affordable and cost-oriented rate in accordance with the general provisions governing the offers of universal service. To this end, the universal service rate for press publications will, after ARCEP's advice, be proposed at a level ensuring cost coverage."
It is in this context that the Autorité de régulation des communications électronique et des postes has received for opinion the description of the characteristics and the rates envisaged by La Poste for a national service offer of postal and periodical mailings.
II. ― Characteristics and prices of the offer
As with the services offered by La Poste for the public service for the transport and distribution of the press, the structure of the tariff grid for the new complementary offer of the universal service is defined according to the level of emergency and the degree of preparation of the consignments. However, preparation levels are based on different sorting characteristics leading to two distinct offers.
The new offer proposed by La Poste consists of two ranges of products: "Free Spirit Press" and "Integrale Press". The two ranges are available in three products that are distinguished by their emergency level:
J + 1 whose delivery time is 1 working day (1);
J + 4 whose delivery time is 4 working days;
J + 7 whose delivery time is 7 working days.
The "Free Spirit Press" range is adapted to the shipments of low-profile press publishers. This offer is accessible without prior sorting or a requirement for routing or "tri distribution" signage. The documents required for filing are limited to the information required for billing. On the other hand, deposits must not exceed 2,000 copies and folds must be presented "adjusted" at the repository. They can be carried out in mail establishments, Courrier Distribution Platforms (PDC) or Courrier Preparation and Distribution Platform (PPDC). The customer has the option to subscribe to an option called "local repository" that allows the publisher to receive a 15% discount [...] for deposits to the filing department or the adjacent departments of the filing department in case they correspond to the jurisdiction area of the Courrier Distribution Centre (CDIS) or the Courrier Distribution Platform (PPDC).
The "Integrale Press" range is suitable for large or medium-sized press publishers. This offer is accessible from a threshold of 500 objects per repository not to exceed 8 kg and provided that the customer distinguishes shipments according to weight slices and according to three levels of separation:
– the level of separation according to the "Liasse Department" requires that copies be classified by department (or by PPDC);
― the level of separation according to the "Liasse Code Postal" requires that the customer constitutes 6 copies (this number may be reduced to 4 provided that each bundle weighs at least 800 g) ordered in the order of the distribution sorting codes;
― the level of separation according to the "liasse Factor" requires that the customer constitute 6 copies (this number may be reduced to 4 provided that each bundle weighs at least 400 g) by distribution sorting code.
The customer has the option to subscribe to two options on the offer Press Integrale :
― the STP option that allows the customer to receive a 1% discount on deposits made on the network dedicated to the delivery of the press (STP);
― the Quality Contractual Commitment option that reflects La Poste's commitment to the date of distribution of the folds. A compensation scheme is put in place for the contract signator when the quality of the national service is below the objectives. Compensation is carried out by a period of late days on the flow to a department whose quality of service is less than national objectives. This compensation is only available to the titles using a routing that has been labelled, subject to a quality approach.
The implementation of the compensation is based on the measurement of the quality of service of the public service offer. The results of the Urgent Press are used for the Integral J+1 offer, those of the non-urgent press for the Integral J+4 offer and those of the Economic Press for the Integral J+7 offer. However, La Poste chose to retain the rates of compensation for the former Paul Agreements and not to double the grid as provided for in the Memorandum of Understanding signed on July 23, 2008 for the services offered by La Poste under the public service for the transport and distribution of the press.
| Integral J + 1 | 5 per cent | 20% | 30 per cent |
| Integral J + 4 | 15 per cent | 20% | 25 per cent |
| Integral J + 7 | 15 per cent | 20% | 25 per cent |
III. ― Analysis of the Authority
In accordance with the general provisions governing universal service offers, the new offer of newspaper and periodical mailings must be affordable and cost-oriented.
The Autorité observes that the tariff grid is based on a device offering variable rates according to the sorting degrees made by publishers. This same device was already present in the current offer with different sorting levels. The new offer's tariff grid contains a reference preparation according to the sort by department. Based on this level of sorting, the savings made by La Poste as a result of preparations made by publishers according to the levels of preparation Code Postal and fat Factor are calculated. The rates of return of the cost savings realized by La Poste are homogeneous according to emergency levels.
Although these two offers have significantly different sorting levels, it is possible to bring the two tariff grids together to set the tariff grid for the new universal service complement to that of the public service services for the transport and distribution of the press. To do so, La Poste has used the average weights per weight bracket as well as the 2007 accounting traffics and their distribution according to the weight bands as they are observed on the current offer to calculate average rates.
Under these assumptions and on average, the comparison of rates by emergency level shows that:
― for J+1 products of the full range, the rate range varies from 80.0% for preparation by department to 105.4% for preparation level according to the fat factor;
― for J+4 products of the full range, the rate range varies from 99.9% for the preparation by department to 110.4% for the preparation level according to the fat factor;
― for J+7 products, the rate range varies from 73.7% for the preparation by department to 79.8% for the preparation level according to the fat factor.
Significant tariff variances allow La Poste to cover the costs attributable to the new offer. [...] These discrepancies highlight the low level of the current supply in terms of costs. Given the level of margins, the Autorité considers that the new offer presents cost-oriented rates in accordance with the tariff obligations of universal service offers.
The Autorité notes that La Poste has made the choice to retain in its economic analysis the associated costs. As in the 2007 accounts, the share of costs not attributable to La Poste's regulatory accounting is low, the associated costs are close to the full costs. In addition, as the associated costs incorporate a contribution to fixed costs, they remain higher than incremental costs, thus respecting the rules applicable to the competitive sector.
To the extent that the new offer will be delivered under the same conditions as La Poste's provision for the public service for the transport and distribution of the press, the costs of the new offer were calculated on the basis of the 2007 attributable costs of the current offer, which La Poste has made aging, taking into account the natural evolution of its expenses. These costs are in accordance with the accounting rules established by the Authority in its Decision 2008-0165 on accounting rules, pursuant to Article L. 5-2 (6°) of the Post and Electronic Communications Code. Nevertheless, the Autorité notes that further studies have been requested at La Poste regarding the application of the weight/format inductor. At the end of these studies, in January 2009, the Autorité could change the implementation of this inductor; the result would be to change the assigned loads on the products according to their weight/format of this offer.
Given the high competitive position held by La Poste in the newspaper and periodical consignments market, the Autorité considers that the reference to attributable costs is the relevant economic approach to assess the orientation of rates to the costs of this product.
Subject to the remarks set out above, the Autorité issues a favourable opinion.
This notice will be made public, subject to the secrets protected by law, and published on the Authority's website and in the Official Journal of the French Republic.
Done in Paris, December 9, 2008.
A N N E X E
Press Free Spirit
| TRANCHES Weight | J + 1 | J + 4 | J + 7 | |||
| Price to object € | Price per kilo | Price to object € | Price per kilo | Price to object € | Price per kilo | |
| 0-50 g to sort | 0.545 0 | 0.430 0 | 0.405 0 | |||
| 51-350 g to sort | 0.427 8 | 2,343 3 | 0.330 0 | 2,000 0 | 0.331 0 | 1.480 0 |
| 351-2 000 g to sort | 1.582 2 | 0.535 1 | 1.445 0 | 0.500 0 | 1.253 5 | 0.316 3 |
Press Integrale
| TRANCHES Weight | LEVEL separation | J + 1 | J + 4 | J + 7 | |||
| Price to object € | Price per kilo | Price to object € | Price per kilo | Price to object € | Price per kilo | ||
| 0-50 g to sort | Liasse Department | 0.515 0 | 0 | 0.375 0 | |||
| Liasse Code postal | 0.435 0 | 0.320 0 | 0.295 0 | ||||
| Liasse Factor | 0.410 0 | 0.295 0 | 0.270 0 | ||||
| 51-350 g to sort | Liasse Department | 0.397 8 | 2,343 3 | 0.300 0 | 2,000 0 | 0.301 0 | 1.480 0 |
| Liasse Code postal | 0.317 8 | 2,343 3 | 0.220 0 | 2,000 0 | 0.221 0 | 1.480 0 | |
| Liasse Factor | 0.292 8 | 2,343 3 | 0.195 0 | 2,000 0 | 0.196 0 | 1.480 0 | |
| 351-2 000 g to be sorted | Liasse Department | 1.412 2 | 0.535 1 | 1.275 0 | 0.500 0 | 1.083 5 | 0.316 3 |
| Liasse Code postal | 1.242 2 | 0.535 1 | 1.105 0 | 0.500 0 | 0.913 5 | 0.316 3 | |
| Liasse Factor | 1.152 2 | 0.535 1 | 1.015 0 | 0.500 0 | 0.823 5 | 0.316 3 | |
The president,
P. Champsaur
