This paper investigates the problems brought about by the rough-and-ready postal service privatization under the free market principle, surveys the counter moves of postal privatization, and proposes a more suitable establishment of the postal service system. By carefully examining the consequences of the recent postal service privatization it is evident that it is difficult to find out who benefits from privatization of postal service. It is also difficult to justify why the postal privatization was carried out. The postal service system should be designed for promoting the public interests and providing basic infrastructure for all wherever they live. Section one provides a brief survey of the developments toward postal service privatization from forming of private committee for discussing postal privatization by former Prime Minister Koizumi in 1999 to the opponents' proposal in 2010. Section two lists the background reasons needed for postal privatization including misuse of enormous amount of postal savings for the Fiscal Investment and Loan Programs. Then rebuttal comment is made for each reason. Section three discusses the distortion of postal service system brought by the privatization and its impact on users and society. One of serious problems is an increase in regional inequality of the availability of the postal service. Finally section four proposes the desirable postal service system which is designed for individual users, and increases social well being.