On the Correct Net Avoided Cost (NAC) Methodology to Be Applied in the Postal Sector

Simona Romito (), Federico D’Intini () and Stefano Gori
Additional contact information
Simona Romito: Poste Italiane
Federico D’Intini: Poste Italiane

A chapter in Service Challenges, Business Opportunities, and Regulatory Responses in the Postal Sector, 2024, pp 101-111 from Springer

Abstract: Abstract This chapter is a contribution to the discussion on the calculation of the net cost of the universal service in the postal sector. From our analysis emerges that the cost calculation processes discussed in Annex 1 of the postal directive might need some revisions and adaptations to specific national contexts. The different evolution of the strategy of postal operators in the past decade signals that in each member state the concept of postal network differs. These differences depend on two intertwined main strategic decisions that postal operators have taken: (1) the level of the diversification away from traditional postal services (letter and parcel) and (2) the established ubiquity and control of the post office network. These strategic decisions strongly affect the calculation of the net cost (cost, revenues, and the intangibles) of the Universal Service Obligation (USO). In the chapter, we suggest a way forward for applying the Net Avoided Cost (NAC) which better adheres to the reality of Postal Network, however, defined the postal network present in each member state.

Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:topchp:978-3-031-65599-9_7

Ordering information: This item can be ordered from
http://www.springer.com/9783031655999

DOI: 10.1007/978-3-031-65599-9_7

Access Statistics for this chapter

More chapters in Topics in Regulatory Economics and Policy from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().