Letters, Postage Stamps: Dwindling Business

In the age of all things electronics and wireless communication, writing letters has become more of a matter of taste and preferred rhythm than enabling exchange. As a resultof this the postal industry may soon become archaic. Australian Post has incurred losses amounting to $200 million. The company has lodged a draft notification with the Australian Competition and Consumer Commission (ACCC) hoping to find an increase in the Nasic Postage Rate (BPR).

People around the world are becoming increasingly tech savvy. Writing letters has become the new pigeon delivery system, so primitive is its practice now. What else could be the fate of postal stamps in such a scenario. 820 million less letters were delivered all over Australia in the last financial year. That is a staggeringly big hole in the business of letters. The company, Australian Post, last increased the cost of stamps in 2016, by a meagre 30 cents.

The new proposal may see an increase from the paltry $1 to $1.10 from next year. This to ensure the survival of the postal business in the country. “In the last financial year, we delivered a profit in line with that three years earlier. We did this with 820 million less letters delivered to over 700,000 more homes.It is important that we responsibly address pricing if we are to protect this important service and keep our network of community post offices open,” Group CEO and managing director Christine Holgate said.

The company will continue to encourage Business and government customers, who send about 97 per cent of all mail in Australia, through an introduction of varied incentives.