Challenge Project

Rethinking USO for the Digital Age for Brazil

Rethinking the Universal Service Obligation (USO) for the Digital Age for Brazil

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Postal operators have until now charged affordable unit price above marginal costs to cover fixed costs associated with serving a particular customer or location. This business model is effective if volumes are sufficient high. Due to the substitution of letters by digital communication means, this is no longer the case. The decline in mail volumes threatens the financial viability of postal operators and the USO sustainability.

Until now, postal operators have been able to adjust their prices upward. However, further price increases may lead to fall in demand, as the price would exceed some senders’ willingness to pay. Reduced revenues give postal operators less funds to cover fixed costs, including costs of meeting USO. Revisiting the pricing scheme in the postal sector: a way to make postal activities and USO financially sustainable? Claire Borsenberger1 and Denis Joram

USO 1.2.pdf

Event finished

Edited (version 7)

31.05.2024 13:27 ~ gustavodamyupuint


Edited (version 6)

31.05.2024 09:48 ~ gustavodamyupuint

Relevant research from the UK: Post cost modelling (2019), Report to modernise (2024)

31.05.2024 08:38 ~ loleg

Edited (version 4)

30.05.2024 08:49 ~ gustavodamyupuint

Edited (version 3)

30.05.2024 08:47 ~ gustavodamyupuint

Edited (version 1)

30.05.2024 08:20 ~ gustavodamyupuint


Joined the team

30.05.2024 08:19 ~ Siu

First post View challenge

30.05.2024 08:13 ~ gustavodamyupuint


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