Postal Services Liberalization in Turkey: Observations and Reflections

Abstract

With a view to promoting competition and improving consumer welfare, postal markets have been liberalized in many jurisdictions over recent years. The present study intends to review liberalization movements in postal services with a particular focus on Turkey. Although Turkey has long before embarked upon reform initiatives to liberalize network industries, the (state-owned) incumbent is one of last comers to meet competitive conditions in postal markets. Recently a new Postal Services Law has been enacted in the country in order to develop a well-designed regulatory structure, to delegate a regulatory agency, to limit the scope of the incumbent's reserved area, to determine standards and financing means of the provision of the universal service, to define licensing and operation conditions, and last but not least to specify principles of tariffs among others. The article concludes that despite crucial shortcomings such as continuation of the postal monopoly, and lack of ex ante regulations regarding third party access to the (monopolistic) incumbent's postal network, introducing competition into postal services is prima facie a positive step towards the improvement of efficiency and so the enhancement of users' prosperity.