Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/201301
Title (translated): 
The Impact of the USO on the Profitability of Postal Service Provision
Authors: 
Koski, Heli
Year of Publication: 
2013
Series/Report no.: 
ETLA Report 19
Abstract (Translated): 
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.
Subjects: 
Universal service obligation
Profitability
Net cost
Postal services
JEL: 
D22
L50
L87
Document Type: 
Research Report
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