Amendment to Act No. 29/2000 Coll., on Postal Services (Act on Postal Services) is aimed at liberalisation of the postal market through the legislative process. From 1 January 2013 private postal service providers shall be allowed to enter into the basic postal services market. Such liberalisation should ensure healthy competition and quality of postal services in the Czech Republic. However, the Act on Postal Services is criticised for guaranteeing (the postal license ) to Česká pošta, s. p. for additional five years, i.e. until the end of 2017. A call for tender will then be announced for the next period. The most controversial part of the Act appears to be the provision concerning the financing of the so-called Universal Service. Following liberalisation, Universal Service is to be provided under the law for the first five years by the Czech Post. A Universal Service compensation fund will be established to collect contributions from postal service providers that have a turnover in excess of CZK 10 million per annum. However, contributions will also be collected from postal service providers on whom an obligation of Universal Service has been imposed, regardless of their profits from operations or their market shares. Any losses incurred by the provision of Universal Service will be covered by the compensation fund.