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Net Costs of USP’s Service Provision: Challenges for the Coming Decade

Felix Gottschalk (), Matthias Hafner and Urs Trinkner
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Felix Gottschalk: Swiss Post
Matthias Hafner: Swiss Economics

A chapter in The Economics of the Postal and Delivery Sector, 2022, pp 251-267 from Springer

Abstract: Abstract The concept of net cost of the universal service obligation (USO) is based on the profit difference of the universal service provider (USP) with and without the USO (Panzer, 2000 and Cremer et al., 2000). In recent times, USPs have been challenged with sharp declines of letter mail and transactions in post offices. As a result, net cost calculations may need to be adapted more regularly. Besides, USP undergo changes in regulation within and outside the scope of the USO. In Switzerland for example, a new provision demands that Swiss Post must deliver newspapers nationwide until 12.30. Such regulatory changes also affect net cost of the USO.

Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:topchp:978-3-030-82692-5_17

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DOI: 10.1007/978-3-030-82692-5_17

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