On January 9th, the Norwegian Ministry of Transport and Communications published a suggestion to change the delivery frequency required by Norway Post from delivery five days per week to delivery every other day (i.e. on average 2.5 days per week). The suggestion is based on Copenhagen Economics’ analysis in the report Effects of changing the USO in Norway, which the Ministry published on the same day.
In the report, we analyse the effects of changing the postal universal service obligation (USO) in Norway on commercial and socio-economical costs and benefits. We also investigate alternative measures that can be put in place to reduce any negative impact on users of reductions in USO requirements.
Our analysis shows that reducing delivery frequency in Norway to every other day would imply substantial savings in terms of lower net cost (and thereby lower levels of public procurement of postal services) whereas the impact on user benefits would most likely be very moderate. Further reductions in delivery frequency would imply a greater risk of causing negative effects, which would call for the introduction of alternative solutions.