Study on Universal Postal Service and the Postal Monopoly Appendix E Universal Service and Postal Monopoly in Other Countries Alex Kalevi Dieke Antonia Niederpruem James I. Campbell UNIVERSAL SERVICE AND POSTAL MONOPOLY IN OTHER COUNTRIES 2 Contents 1 Summary ................................................................................................................ 6 2 Introduction ......................................................................................................... 17 3 European Union .................................................................................................. 18 3.1 Introduction to postal policy in the European Union ................................... 18 3.2 Universal service policies ............................................................................. 19 3.2.1 Universal service obligation ..................................................................... 20 3.2.2 Scope of universal services ....................................................................... 20 3.2.3 Uniform tariff requirements ...................................................................... 21 3.2.4 Access requirements ................................................................................. 21 3.2.5 Delivery requirements ............................................................................... 22 3.2.6 Quality of service ...................................................................................... 22 3.3 Monopoly policies ......................................................................................... 22 3.4 Effectiveness of eliminating the legal monopoly ........................................... 23 3.4.1 Universal service provision....................................................................... 23 3.4.2 Competition............................................................................................... 24 3.4.3 Impact of market opening on universal service ........................................ 25 4 United Kingdom .................................................................................................. 27 4.1 Introduction to postal policy in the United Kingdom ................................... 27 4.2 Universal service policies ............................................................................. 28 4.2.1 Responsibility to ensure universal service ................................................ 28 4.2.2 Scope of universal services ....................................................................... 28 4.2.3 Uniform tariff requirements ...................................................................... 29 4.2.4 Access requirements ................................................................................. 29 4.2.5 Delivery requirements ............................................................................... 30 4.2.6 Quality of service ...................................................................................... 30 4.3 Monopoly policies ......................................................................................... 31 4.3.1 Termination of the postal monopoly ......................................................... 31 4.3.2 Introduction of upstream competition ....................................................... 32 4.4 Effectiveness of eliminating the legal monopoly ........................................... 33 4.4.1 Universal service provision....................................................................... 34 4.4.1.1 Access conditions.............................................................................. 34 4.4.1.2 Delivery conditions ........................................................................... 34 4.4.1.3 Quality of service .............................................................................. 35 4.4.2 Competition............................................................................................... 35 4.4.3 Tariffs ........................................................................................................ 37 4.4.4 Profitability of the public postal operator ................................................. 38 GEORGE MASON UNIVERSITY NOVEMBER 2008 UNIVERSAL SERVICE AND POSTAL MONOPOLY IN OTHER COUNTRIES 3 4.4.5 Impact of market opening on universal service ........................................ 40 5 Germany .............................................................................................................. 43 5.1 Introduction to postal policy in Germany ..................................................... 43 5.2 Universal service policies ............................................................................. 44 5.2.1 Responsibility to ensure universal service ................................................ 44 5.2.2 Scope of universal services ....................................................................... 45 5.2.3 Uniform tariff requirements ...................................................................... 45 5.2.4 Access requirements ................................................................................. 46 5.2.5 Delivery requirements ............................................................................... 46 5.2.6 Quality of service ...................................................................................... 46 5.3 Monopoly policies ......................................................................................... 47 5.4 Effectiveness of eliminating the legal monopoly ........................................... 48 5.4.1 Universal service provision....................................................................... 48 5.4.1.1 Access conditions.............................................................................. 48 5.4.1.2 Delivery conditions ........................................................................... 49 5.4.1.3 Quality of service .............................................................................. 49 5.4.2 Competition............................................................................................... 49 5.4.3 Tariffs ........................................................................................................ 51 5.4.4 Profitability of the formerly public postal operator .................................. 51 5.4.5 Impact of market opening on universal service ........................................ 54 6 Sweden ................................................................................................................. 55 6.1 Introduction to postal policy in Sweden........................................................ 55 6.2 Universal service policies ............................................................................. 55 6.2.1 Responsibility to ensure universal service ................................................ 55 6.2.2 Scope of universal services ....................................................................... 56 6.2.3 Uniform tariff requirements ...................................................................... 56 6.2.4 Access requirements ................................................................................. 56 6.2.5 Delivery requirements ............................................................................... 57 6.2.6 Quality of service ...................................................................................... 57 6.3 Monopoly policies ......................................................................................... 57 6.4 Effectiveness of eliminating the legal monopoly ........................................... 58 6.4.1 Universal service provision....................................................................... 58 6.4.1.1 Access conditions.............................................................................. 58 6.4.1.2 Delivery conditions ........................................................................... 59 6.4.1.3 Quality of service .............................................................................. 59 6.4.2 Competition............................................................................................... 59 6.4.3 Tariffs ........................................................................................................ 61 6.4.4 Profitability of the public postal operator ................................................. 63 6.4.5 Impact of market opening on universal service ........................................ 65 7 The Netherlands .................................................................................................. 67 GEORGE MASON UNIVERSITY NOVEMBER 2008 UNIVERSAL SERVICE AND POSTAL MONOPOLY IN OTHER COUNTRIES 4 7.1 Introduction to postal policy in the Netherlands .......................................... 67 7.2 Universal service policies ............................................................................. 68 7.2.1 Responsibility to ensure universal service ................................................ 68 7.2.2 Scope of universal services ....................................................................... 68 7.2.3 Uniform tariff requirements ...................................................................... 69 7.2.4 Access requirements ................................................................................. 69 7.2.5 Delivery requirements ............................................................................... 69 7.2.6 Quality of service .....................................................................................