Ep 325: Denmark abolishes the USO... almost

Denmark has been at the vanguard when it comes to changes to letter delivery and digitisation of letter services. But new changes to the universal service obligation will have far-reaching implications for letter and parcel delivery in Denmark. Mindaugas Cerpickis and Jacob Østermann from Copenhagen Economics analyse the changes and implications for the postal world. Background to the USO being "abolished" Post Denmark's freedom to vary letter pricing and delivery schedules to save costs Digitisation of government communications USO as we know it being abolished Drastic letter volume declines Parcel volumes reaching parity with letter volumes Internet penetration in Denmark e-Boks digital mailbox Centralising government services Replacing USO with tender process for targeted services Market delivering services Post Danmark's ability to provide USO without government support EU Postal Services Directive and UPU requirements Three aspects of USO being put out to tender: island communities, services for the blind, and international mail Expectations that the market will cover the rest of the USO Letterboxes and parcel lockers in island communities Universal access to delivery infrastructure Monitoring the market to see if there are any shortcomings in providing letter services Could the Danish model be used in other postal markets? Future of postal regulation Understanding social expectations of postal services