This paper analyzes whether frequency of delivery and nationwide coverage obligations constitute USO net costs. With no USO on home delivery in place, the USP may be able to increase profits by optimizing its delivery services. Three such optimizations are scrutinized in detail: (1) adjusting...

Universal service providers (USP) are increasingly active in business segments other than the segment consisting of their Universal Service Obligation (USO). Price regulation of USO services is usually cost-oriented and differentiated between USO- and non-USO-products. Hence, regulatory rules on...

In 2013, the U.S. Postal Service (USPS) announced plans to discontinue the delivery of letters and flats on Saturdays, while continuing parcels delivery. The paper analyses the financial effects of the plan based on a bottom-up delivery model.

This paper analyzes the net cost of universal service obligations in the postal sector after full liberalization and the potential burden they represent for the universal service provider. It considers various interpretations of what an ‚unfair burden. might be and discusses the competitive...

The paper first analyzes if there is a need to develop universal postal services in developing countries. We conclude that postal services serve vital functions in economies now and for the foreseeable future. We then discuss regulatory remedies that will foster the evolution of universal postal...