The liberalization of postal services

This position paper is intended to present the case "for" liberalization, but in both a commercial and social context.

Universal service

• There is widespread acknowledgement that access to basic postal services is a universal right. This was endorsed at the Universal Postal Union (UPU) Congress in Beijing in 1999. Universal service is essential for the effective functioning of business and commerce.
• The universal service should not be a financial burden to the postal operator. If the universal service obligation (USO) is a financial burden, financing of the USO can be considered on the following basis:
• a reservation of certain services in order to protect the USO;
• a "compensation" fund with all operators in the universal service area contributing.

The compensation fund should reflect the true transparent costs of the USO.

• ICC's preferred option is the second since it necessitates no reserved area. Yet each option does nothing to encourage the operator to improve its efficiency.
• The independent regulator - independent of both government and the postal operator - must give the universal service provider (USP) efficiency targets (and penalties) to ensure minimizing the cost of the USO.