Changing communication habits of businesses and private individuals are transforming postal markets throughout Europe. Despite necessary changes in regulatory frameworks, the universal service obligation (USO) still puts a strong constraint on many postal operators, preventing them from acting in the commercially most optimal way.
In Iceland, the only viable option for the government to reduce the USO burden in the long run will be through direct compensation of USO net costs. Not compensating the USO burden may threaten the future quality of service and affect the long-term competitiveness of Iceland Post.
These are some of the main conclusions in our recent study on USO net costs in Iceland.
For further information, please contact Anna Möller Boviei