June 24, 2024 Consultation with the Information and Communications Council on How the Postage System Should Adapt to Changes in the Business Environment Surrounding the Postal Business

 Today, the Ministry of Internal Affairs and Communications (MIC) has consulted the Information and Communications Council, chaired by ENDO Nobuhiro, Executive Advisor to NEC Corporation, on how the postage system should adapt to changes in the business environment surrounding the postal business.

1. Outline of and reasons for the consultation

 Due to a decrease in the number of mail pieces caused by the spread of the Internet and social networking services (SNSs), as well as the effects of soaring prices of fuels and other commodities, Japan Post Co., Ltd. (hereinafter referred to as "Japan Post") recorded an operating loss in FY 2022 for its postal business. This is the first time since privatization, and the outlook for the future is very grim.
 Under these circumstances, the MIC amended the Regulations for Enforcement of the Postal Act (MIC Ordinance No. 5 of 2003) on Thursday, June 13, 2024 to set a maximum postage for standard-sized mail pieces weighing 25 grams or less.
 On the same day, the MIC received a notification of postage changes from Japan Post. After a notification period to users, the postages are expected to be revised on Tuesday, October 1 of the same year.
 Unfortunately, even with the aforementioned postage revision, the revenue and expenditures of the postal business are expected to remain grim due to the ongoing decline in the number of mail pieces and other factors.
 To ensure a stable postal business in the future, we need to consider how the postage system should adapt to changes in the business environment surrounding the postal business.

 In light of the above, we have consulted the Information and Communications Council on how the postage system should adapt to changes in the business environment surrounding the postal business.

2. Matters that should be included in a report

• 1.
  How the postage system should adapt to changes in the business environment surrounding the postal business.
• 2.
  How postage rates should be calculated to ensure transparency and appropriateness.
• 3.
  Other matters deemed necessary.

3. Preferred timing for reporting

 Around the summer of 2025.