As the radio or television did not signal the death of newspapers, the Internet and online communication will not ring the death-knell for postal services.

In an e-mailed interview to Business Line, Mr Edouard Dayan, Director-General of UPU , dwelt on issues and challenges before the agency.

Excerpts from the interview:

In a world of increasing usage of e-mail and other online forms of communication, along with online business transactions, what is the relevance of the post-office and the postal system?

Not everyone has access to e-mail or other information and communication technologies, which is why the World Summit on the Information Society in 2003 and 2005 focused on finding ways to reduce the digital gap. The Summit recognised the value of the worldwide postal network and post-offices as natural entry points for citizens to access new technologies and deliver many important social services, such as electronic money transfers.

As the radio or television did not signal the death of newspapers, the Internet and online communication will not ring the death-knell for postal services. Instead, these new communication tools are providing the postal sector with tremendous opportunities to develop its core business, such as increasing the volumes of parcels resulting from e-commerce, as well as new services and products, such as hybrid mail. Studies are even showing that Internet users today receive more physical mail than non-Internet users, because the online transactions they perform result in companies sending them direct mail pieces or parcels.

Are public-private partnerships the way forward to keep the postal system relevant?

Public-private partnerships can be very beneficial for postal operators, but they must determine the need according to their own domestic strategies. Some postal operators are also partnering with private postal operators that have traditionally been considered competition, which is why these days many postal executives talk about “co-opetition.”

In the area of money transfers, the UPU is helping member-countries make the transition from the traditional paper money order, a service created by it in the late 19th century, to electronic money transfer.

Through its own international financial network, the UPU is facilitating the exchange of electronic money transfers in many member countries, thus providing greater access to such affordable services to migrant workers and other citizens.

India is actually one of the latest large countries to adopt the UPU’s International Financial System, developed by its Postal Technology Centre, which facilitates money transfer exchanges for many migrants working in India to support their families in another country.

What areas of business should a country’s postal system look at in order to improve revenues, add value to customers and aid government in serving the public better?

There are a number of areas where the postal service can bring value and many postal operators are being innovative in developing new services for customers or simply improving existing ones. Postal financial services, for example, are developing at a rapid rate, and in some countries revenues from this segment of activity account for more than 50 per cent of total postal revenues. The growth of e-commerce and the parcel volumes thus generated are also opportunities to consider.

Let’s not forget direct mail, which is growing in popularity in many countries, including India. An important element of any postal service is quality of service, as it is a determining factor in gaining new customers and maintaining existing ones.

Once a country has the tools to properly monitor its quality of service and repair any deficiencies in its system, the possibilities for offering new services and increasing revenues are endless.

How is the UPU leveraging technology to improve the international exchange of products and services?

We are using new technologies in many areas, for example in tracking and tracing mail. The UPU enables all member countries to acquire technology developed by its Postal Technology Centre to manage all aspects of international mail exchanges.

They use this technology to exchange electronic messages alerting each other of incoming international mail volumes and tracking mail, bringing greater efficiency to mail processing and delivery.

In terms of electronic services, the UPU has adopted regulations for digital postmarks (the electronic equivalent of the physical postmark) and hybrid mail in order to facilitate the interoperability of these services by postal systems offering them.

Finally, the UPU will integrate an e-strategy into the next World Postal Strategy to be adopted by its member countries at the 2008 Universal Postal Congress in Nairobi, demonstrating the importance of leveraging new technologies to bring better services to businesses and citizens.

What is the need for the ‘.post’ top-level domain that UPU is pushing for with ICANN?

Establishing a ‘.post’ top-level domain for the worldwide postal sector will provide an opportunity to establish the worldwide postal sector’s presence on the Internet, bringing to cyberspace many of the values normally associated with the physical postal network, including security and trust, which are two issues currently preventing businesses and consumers from performing more online transactions.

Identity theft, phishing, spam ... these are some of the issues that a ‘.post’ top-level domain could help resolve.

The long experience with physical addresses and authentication of identities will enable postal operators transfer that knowledge to an online sphere of activity. We are still analysing all the opportunities that ‘.post’ could afford to the sector, but we are moving forward with the project.

What role has UPU played in times of catastrophe and conflict?

Whether it was tsunamis in South Asia, floods in Romania, hurricanes in the Caribbean, Guatemala, El Salvador and the US, or earthquakes in Iran, Pakistan and India, the postal service often served as a lifeline for the victims, so it is important to re-establish the postal service as quickly as possible. In such cases, the UPU provides assistance to countries as efficiently as possible after they have been struck by catastrophe. Following many natural catastrophes in 2004 and 2005, we established a mechanism to help countries as best as possible in times of need.

The UPU’s regional advisers work closely with the Restricted Unions and UN aid organisations to provide relief efforts. It sets up emergency aid projects as needed to meet the immediate needs of affected postal administrations and restore postal services.

These projects are financed from the Union’s limited development co-operation budget, so international solidarity becomes critical. The UPU calls on member countries for assistance when disasters occur.

Over the past few years, member countries have been generous with their time, donations and financial resources. Several countries contributed to a special account set up after the tsunamis hit South Asia in 2004. The money was used to meet the most urgent equipment needs of the Maldives, Indonesia and Sri Lanka.

A special fund was also created to assist Pakistan Post, which suffered extensive damage to its infrastructure following a major earthquake in October 2005.

What is being done to improve international express mail?

Express Mail Service (EMS) is a postal express service for documents and merchandise. Through the EMS Co-operative at the UPU International Bureau, EMS is monitored and quality improvement programmes are set up to help postal systems provide the best possible service internationally. Globally, on-time delivery of EMS items (standards vary per country for geographical reasons) reached 86 per cent in May 2007, compared to 60 per cent at the beginning of 2000. EMS is today provided by 197 operators worldwide.

D. MURALI

C. RAMESH

More Stories on : Interview | Financial Services

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page