The overarching aim of the postal sector is to provide quality postal services at a reasonable price on a universal basis within country and between country and the rest of the world. With the anticipated rapid evolution of e-commerce, the postal sector is becoming the effective physical interface for delivering e- commerce solution. Therefore postal and courier services must aim to satisfy the logistics requirements of evolving e-commerce services.

While the private courier service providers have been effective in delivering excellent services consistent with the aims stated above, Post Corporation (PC) has not. Indeed the reform of the postal sector required under previous policies has not been accomplished. Therefore, the first goal of this Policy is the establishment of a transformed Post Corporation that is able to participate fully in e-commerce and deliver letter mail and packages across country, as well as internationally, in accordance with its mandate as the designated universal service provider (Designated Operator).

The second goal of this Policy is the completion of a street addressing scheme that covers all locations across country and all buildings. Couriers currently provide delivery to the premises. Such services, and indeed services provided in other markets such a services and emergency services, require a clear building addressing scheme based on digital maps that include street names and a number that identifies an individual building. Country has to start to establish such a scheme more than ten years ago. The efficiency of doorstep delivery services and any other service that requires frequent visits to new premises would be greatly improved by the universal adoption of such a scheme.

The third goal of this Policy is the provision of access to postal, financial and government services across the country and to all segments of society through Post Offices and Knowledge Stations. This goal is related to the transformation of government services prescribed elsewhere in this policy and requires the transformation of the Post Office estate and actions related to the Postal Fund.

Conduct an analysis of the market a for postal and related services

Government has to require the Commission to conduct a comprehensive analysis of the market for postal services and services that may be provided through Post Offices. The purpose of this market analysis is to provide the information necessary for reviews of the universal service and PS’s performance contract, for transforming PS’s operations, and for transforming the Post Office estate in terms of location, infrastructure and services provided.

The market analysis will determine the characteristics of PS’s market, the requirements of the universal service, the wider requirements of postal, express mail and parcel services, the locations of post offices to best serve the needs of local communities and the range of services that post offices should provide. The analysis will provide forecasts for different categories of mail and volumes of business by service that may be provided through Post Offices. Forecasts of geographic distribution of mail and other services will also be made.
This analysis must precede many of the other actions required under this Policy in

the postal sector, and therefore Government has to require that it is completed within the first half of the 2019 year.

Address the performance of PS

Government has to require that PS is transformed in order that it is able to carry out the functions required of it as the Designated Operator and provide the services that the market requires in an efficient manner and with the minimum of intervention by Government.

Government has to therefore require a number of specific actions to be undertaken to achieve this transformation:

Appoint a qualified postal advisors

Government has to appoint a qualified postal advisor to provide expert input and to guide and manage the transformation process. Government has to require that the advisor reports to the Minister of ICT who is the representative of PS’s shareholder with responsibility for PS. The advisor will have Board level experience of successfully commercializing the management and operations of postal operators in order that they may participate fully in commercial markets for postal and courier services similar to the Any Country Ian market.

Review PS’s governance

Government has to require the advisor to appraise PS’s Board to determine whether it contains the relevant mix of expertise and has the necessary processes to govern PS effectively, and to propose options for improving Board representation and processes. Following this appraisal, Government has to through the Ministry to review the constitution of the Board and make any necessary changes.

Undertake the transformation of PS

Government has to require the PS Board, working with the advisor, to evaluate PS’s capacity to meet its obligations, to develop a plan to transform PS that will be reviewed by Government, and to implement that plan subject to the Government review. Government has to require that the evaluation of PS’s capacity and the transformation plan has to completed by mid of year.

The evaluation of PS’s capacity to meet its obligations will cover PS’s managerial capacity and organizational model, its internal infrastructure, its IT systems and manual processes, costing, accounting, planning, operational and monitoring systems, and its ability to undertake the commercial functions of financial and cost accounting, marketing and sales essential to a modern postal operator. This evaluation will be required to assess PS’s ability to address the market requirements identified in the market appraisal, to address its obligations under the Postal Law and subsidiary regulation, to satisfy its performance contract, to provide the Commission with the information it requires for its own purposes under the Postal Law, and to act on instruction by the Commission. In addition, the evaluation of PS’s capacity will need to assess its capacity in business and service planning, provisioning, operations, monitoring and performance improvement.

Government has to require this evaluation to consider and evaluate options for the provision of the universal service and other services provided by PS. Government has to require that the options considered should be wide ranging. Government has to require that the evaluation of options considers the net cost of each option, the impact on staffing and post office assets, as well as the likely strengths, weaknesses, opportunities and threats.

Government has to require the PS Board to report on the performance of PS and the options for continued provision of the services provided by PS to the Minister of ICT. Government will review this performance appraisal. Government will then require the PS Board to prepare a business plan in accordance with the outcome of that review.

Government has to require the PS Board to prepare a business plan with the objective of enabling PS to meets its obligations and requirements while minimizing any subsidy it receives as Designated Operator. The preparation of the business plan should start once the market appraisal has been completed and once the PS Board has reported to the Minister of ICT on PS’s current performance and ability to satisfy its obligations and requirements.

The business plan will provide a plan to improve management, operations and systems within PS. and will include the following minimum requirements:

• the introduction of marketing and sales functions with related processes, systems and expertise.
• address the need to re-orientate PS so that it is focused on the provision of services to customers.
• a financial model of PS that will include an income statement, a balance sheet, and a cash-flow statement, and thereby provide estimates of revenue, capital expenditure, operating costs, costs of sale, financing costs, gross margin, earnings before interest, tax, depreciation and amortization, earnings before interest and tax, net earnings and free cash flow.
• address the critical requirements for financial control and regulatory cost accounting.
• include a change management program intended to re-orient staff at all levels and in all functions to working in a commercial environment with a customer orientation.
• specify the funding requirements associated with the transformation program.

Financial control and regulatory cost accounting are of critical importance. Therefore Government has to require that the necessary processes and systems are operational by the end of 2019.

Government requires the PS Board to provide the business plan to the Minister of ICT. Government has to review the business plan and the funding requirement. Government has to require the PS Board to act in accordance with the outcome of that review having allocated the necessary funding to the plan.

Government has to require that the PS Board regularly reports to the Commission on progress on implementing the plan.

Review the Post Office estate

Government has to require the PS Board to undertake a review of the Post Office estate. The aims of this review are:
(i) to determine the locations of Post Offices that best serve business and consumers,
(ii) to determine the facilities and staffing required to enable them to provide the range of postal services identified in the postal market appraisal and the range of government services arising from the government e- transformation program described elsewhere in this Policy.

The review should consider fully costed options that enable colocation of Post Offices with local businesses, with benefits to PS and the local business, as well as other options in order to determine the most cost effective means of delivering Post Office related services. The review should include an economic impact assessment to determine the benefits and costs of alternatives to the economy.

Since the Post Offices will be providing government services, it is important that the Ministry, with its responsibility in that area, is informed of the PS Board’s proposals. Therefore Government has to require the PS Board to provide a report on the review to the Minister of ICT providing fully costed evaluations of each option. Government has to advise the PS Board on its conclusions. Government has to then require the PS Board to implement the results of the review taking due consideration of the Government’s conclusions.

Review and revise the Universal Service

Government has to require that the Universal Service meets the requirements of postal service users in the digital economy while safeguarding the Designated Operator from unfair competition. Therefore, Government has to require the Ministry to review the universal postal service and prepare a new universal postal service policy taking account of standards defined by the Universal Postal Union and the postal market appraisal. The draft policy will be subject to public consultation.

On approval, Government will require the Commission to implement the universal postal service policy.

Develop cost oriented tariffs for the Universal Service

Once PS has implemented cost accounting systems, Government has to require the Commission to approve revised postal rates for universal service products and services based upon the provision by PS of the necessary cost information during the first quarter 2020.

Revise PS’s performance contract

Government has to require the Ministry and the PS Board to review and revise the performance contract between the Commission and PS in accordance with the business plan agreed with Government and international standards.

Government has to require that the performance contract specifies measurable

performance criteria associated with the provision of the universal service, customer satisfaction, financial performance, the implementation of the business plan, and the availability of Post Offices and services provided at post offices.

Maintain the independence of the Postal Fund

Government has to require that the Postal Fund is subject to separate financial accounting and regulation within PS. Despite the inclusion of the Postal Fund within PS’s business, the Postal Fund and PS’s other businesses are different in kind. Therefore, Government has to require that the financial accounts of the Postal Fund and of PS’s other businesses are separate and independent of each other. Government has to require that any transfers between the Postal Fund and PS’s other businesses, and any use of PS’s facilities and services by the Postal Fund are shown in the Postal Fund accounts and in PS’s accounts for its other businesses.

Streamline customs clearance for mail and parcels handled by PS

Government has to require that the PS Board and the Ministry of Finance jointly to develop and implement a customs clearance process for international postal services that emulates that used with licensed international couriers. Such a process will eliminate the requirement for attendance by the recipient of inbound mail and parcels during customs clearance. The process should reduce turnaround time and enable alternative methods of payment of customs dues by the recipient. Customs will continue to be empowered to inspect mail and parcels to protect the interests of the country and Any Countryian society.

Complete Street addressing

Government has to require municipality authorities to complete street addressing in their municipalities by assigning names to streets and numbers to buildings, and publishing updated digital maps that include these names and numbers. Government then has to require that the digital maps are updated frequently and regularly to take account of new and changed streets and buildings.

The issues to be addressed in the Postal sector are:

• The need to reverse Post’s (PS) continued poor performance. A decision regarding the continued independent existence of PS or rigorous restructuring and capacity building is urgently needed and is perhaps the single most important element of this Policy.

• The ability of PS to provide the Commission with adequate cost information necessary for the calculation of its regulated prices. This issue arises because PS has inadequate understanding of the cost of its activities.

• The lack of track and trace systems or point of sales systems in PS which means that PS cannot compete with private courier services in high value market segments including e-commerce parcel delivery.

• The lack of relevant quality standards in PS which makes the monitoring of performance ineffective and inconclusive. A modern postal operator cannot compete with private sector competitors without such standards and performance levels that conform to the standard.

• The naming of all streets and roads, and the numbering all the buildings and apartments necessary for courier services and for PS to deliver to premises in the future if required.

• The need for digital maps that show street names and building numbers or a postal code system.
Digital maps or post codes would be used by couriers, utility companies, emergency services and others to identify locations and to demarcate routes reducing journey times and enabling route planning to be carried out.

• The need for Post Offices to be located where they may best serve customers and to provide services that customers need.

• Revision of the approach taken to customs clearance by Customs and PS. The present process is leading to inefficiency, delay, and inconvenience for the customer.

• The need for transparent accounting arrangements for the Postal Fund/Bank once it has been merged with PS, will secure unified payment;

• Post Banks offers savings accounts, money transfer, mobile real time payment, administration salary, pensions, loans, credit, investment in small rural application and insurances through the third parties, bill and utility payments.

• The Post Bank will reach to rural and far-flung areas of the country, delivering banking services to the doorstep of every citizen. Postal Banking will benefit consumers who do not have access to traditional banks as well as those who would prefer a more public option. Postal services in 139 countries around the world offer some form of financial services and the expansion of services will also strengthen our public Postal Service. Postal Banking will:
 Serve individuals underserved by traditional banks who turn to the expensive and predatory practices of the Alternative Financial Services industry;
 Promote an economy that serves the people, and
 Strengthen and protect a vibrant public institution mandated to provide universal and affordable service.

• Unified Payments Interface (UPI) is an instant real-time payment system developed to facilitate inter-bank transactions. The interface has to be regulated by the state Reserve (Central) Bank and works by instantly transferring funds between two bank accounts on a mobile platform.

• Immediate Payment Service (IMPS) is an instant payment inter- bank electronic funds transfer system, offers an inter-bank electronic fund transfer service through mobile phones.

• Real-time gross settlement (RTGS) systems are specialist funds transfer systems where the transfer of money or securities[1] takes place from one bank to any other bank on a “real time” and on a “gross” basis. Settlement in “real time” means a payment transaction is not subjected to any waiting period, with transactions being settled as soon as they are processed. “Gross settlement” means the transaction is settled on one-to-one basis without bundling or netting with any other transaction. “Settlement” means that once processed, payments are final and irrevocable

• Postbank provides a full range of Cash Management Services helping corporate customers, individuals to smoothly run their daily transactions. Cash Management includes opening and maintenance of different types of accounts, cash operations and payments in BGN and foreign currency

• Individuals
 Consumer Loans
 Mortgage Loans
 Credit and Debit Cards
 Savings
 Money Transfer

• Corporate Banking
 Investments and Trading

• Small Business Banking
• Personal Banking
• Private Banking
• Digital Banking