Market development

The growing need to liberalize the postal market since the governmental postal services attaining an independent status by being corporatized into a limited liability company and the ever increasing competition resulting from diminishing postal volumes, are causing a slow deterioration of the assigned services to be rendered by the postal company.

This inevitably leads to consequences for the development of the operational activities of the postal company in Curaçao and its revenues and compels a revision of the policy for the regulation of the postal sector by the government. This goes hand in hand with a need to revise the manner in which the concession fee is determined.

E-substitution

An important cause of the reduction in postal volumes is e-substitution with consequences for the income of the postal company derived from the transportation of letters and other documents by post.

E-substitution is characterized by a decrease in the regular postal traffic of letters, caused by a greater use of new types of electronic communication and handy applications such as e-mail, chat boxes, sms traffic, electronic mail boxes and signatures etc.

Through this development the need to purchase postal stamps and the use of post office boxes also diminishes.

Growth of express mail services and parcel post services

Increasing e-commerce activities lead to greater importance of express mail services and parcel post services, as a result of which an increase may be noted in the use of courier services. Since this increasing competition by courier services has a direct impact on the income of the postal company and in view of the speed of the developments, it will be necessary to intensify the regulation and the supervision in this market.