Posti thinks the Postal Act should be amended soon in order to secure the maintenance of postal services in the whole of Finland in the coming years.
The Ministry of Transport and Communications is currently preparing amendments to the provisions on universal services in the Postal Act. Today Posti submitted its comments on the matter to the Ministry. In Posti's view, the primary objective of the amendment should be to secure the availability of the universal service in the digitizing world. The amendment should take into consideration the drastic increases in digital communications and the changing needs of customers.
Posti's universal service obligation currently covers a minor share of all postal items, i.e., letters and postcards paid by stamps. Less than 5% of all mail is covered by the provisions.
The universal service obligation means that Posti must deliver letters on five days a week, despite the fact that the average Finn receives only 11 letters or postcards covered by the obligation per year. Letter is the new wired telephone: it is becoming less and less common as a means of communication.
Digitization drops postal volumes and threatens the universal service
According to Malinen, digitization has transformed the postal sector more drastically than any other phenomenon in its history, and the annual decreases in postal volumes-of up to 10%-threaten the existence of the universal service. Without the cost-effectiveness enabled by less stringent regulations, the per unit costs of publications and letters will become unreasonably high, given the lower volumes.
- The customers want to consume reasonably priced postal services. By deregulating the universal service, we could keep the delivery costs of all items, including newspapers, in control. This would secure deliveries in all parts of the country, Malinen says.
Without these amendments, the universal service might become financially unsustainable, which might require more public funds for postal delivery. According to an assessment by Etla in 2013, the annual net costs of producing the universal service amount to approximately EUR 76 million.
Posti supports the option presented by the Ministry in its memorandum that would repeal the provision on delivering items covered by the universal service obligation on five days a week and enable delivering them on three days a week in the future.
Source: Posti group
Facebook
Youtube