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Calculating The Cost Of The Universal Service Obligation - The Need For A Global Approach

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Executive Summary

In Switzerland as well as in the European Union postal market liberalization is a current issue. The reserved area has been the traditional means to finance the provision of the Universal Services. Absent a reserved area other means of funding are needed. If the Universal Service Obligations (USO) is delegated to one or more postal operators, compensating them is an important issue. There are two problems to solve: First, the cost of universal service obligation needs to be estimated; second, the Universal Service Provider(s) (USP) has to be reimbursed. The paper mainly deals with the former of these issues.

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