IDEAS home Printed from https://ideas.repec.org/p/rif/report/19.html
   My bibliography  Save this paper

The Impact of the USO on the Profitability of Postal Service Provision

Author

Listed:
  • Koski, Heli

Abstract

This study aims at investigating the order of magnitude of financial burden of the universal service obligation for the universal service provider, Itella, in the Finnish postal sector. It evaluates the difference between universal service provider’s profitability with the universal service obligation and without it. The data suggest that the provision of universal letter services in compliance with the law causes a notable financial burden for Itella. The profitability of the universal service provider is clearly lower than that of other firms active in the Finnish postal and courier activities sector. During the years 2005–2012, the annual loss due to the universal letter service obligation was about 76 million euros, or 5–8 percent of the turnover of the universal service provider.

Suggested Citation

  • Koski, Heli, 2013. "The Impact of the USO on the Profitability of Postal Service Provision," ETLA Reports 19, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:report:19
    as

    Download full text from publisher

    File URL: http://www.etla.fi/wp-content/uploads/ETLA-Raportit-Reports-19.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Universal service obligation; Profitability; Net cost; Postal services;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L87 - Industrial Organization - - Industry Studies: Services - - - Postal and Delivery Services

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rif:report:19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kaija Hyvönen-Rajecki (email available below). General contact details of provider: https://edirc.repec.org/data/etlaafi.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.