Home 180530 PostNL | Theory and Practice
180530 PostNL | Theory and Practice

180530 PostNL | Theory and Practice

No. pages 20

In our April report, we made an assessment of PostNL's status quo and prospects. We then also referred to the current consultation on the future of the Dutch market for addressed mail and concluded that this could turn into a potential game changer.

Even more than before, we see the need for consolidation. In many of earlier reports we argued that the Dutch market was in fact too small to accommodate more than one E2E network. In our opinion the ACM report contains all the ingredients to inflict even more damage (economic value, employment/labour conditions, continuity and quality of the mail infrastructure, etc.).

The main reason for this lies in the proposed access tariff revisions, which we feel are not based upon realistic assumptions.

In this report, we will assess these flaws and discuss the possible consequences



Table of contents

1. A long expected report

2. Costs allocation criteria
2.1. Introduction
2.2. Forward costing
2.3. WACC: theory vs practice
1) Peer group WACC
2) AEX-Index constituents' WACC
3) Apples and oranges

3. The WACC is not the only flaw
3.1. Risk of cherry-picking
3.2. Diseconomies of scale
3.3. Small senders of mail won't benefit

4. Conflicting interests
4.1. ACM: mission accomplished
4.2. PostNL: caught between a rock and a hard place
4.3. Politics: lack of clear choices

5. Summary and Conclusions


Created Date: Thursday May 31, 2018 11:52:31
Last Updated Date: Thursday May 31, 2018 11:52:31
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