Universal Service Could Face Changes in the Future

Universal service could face challenges

Among many changes being considered for Royal Mail service by Ofcom, the independent regulator of the communications industry in the United Kingdom, is the modification of the Universal Service Obligation (USO) to deliver mail six days per week.

Ofcom is considering the adjustment of the USO to improve the financial condition of the struggling Royal Mail service. If successful, such efforts could reduce the number of days mail is delivered to all or a part of its nationwide network. The move would also have the possibility of creating different rates for different parts of the country. Varied rates for the same service have the potential of increasing cost efficiency, but could also make a letter mailed in a rural area more costly than in a major city.

The Universal Service consideration is currently only part of a large effort to reduce the costs of Royal Mail. Other major adjustments under consideration by Ofcom such as privatization and creating a single class rate for mail are still in the exploratory phase.

Do you think modifying the Universal Service Obligation should be part of a plan to improve the mail service?

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2 Comments

  1. Grannybunny

     /  February 19, 2013

    No, I do not think the universal service obligation should be changed. It is the Postal Service’s biggest competitive advantage, and — without it — the majority of Americans would lack mail service at an affordable price.

  2. Jonn

     /  February 22, 2013

    Different rates for different parts of the country would make mailing items for some folks unaffordable. One rate for the same item across the country ensures equal access for all. I’m just hoping that people continue to use that access. Maybe the new muscle car stamps would help. I’m a car buff, and I’m really looking forward to those when they come out

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