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0 agcom presentation_ws_19112014_final
1. on
The Implementation of the Universal Service in the postal sector in view of the market developments
ERGP
Stakeholders Workshop
Camilla Sebastiani AGCOM Co-chair with PTS of the ERGP “Subgroup on net cost of USO - VAT as a benefit/burden”
Bucharest, 19 November 2014
2. Purpose
•The purpose of this workshop and public consultation is to collect inputs provided by stakeholders on the issues identified in the ERGP Discussion Paper on the Universal Service implementation
•All inputs will be included in the final ERGP Report and made public
•The final ERGP Report will be adopted by the end of 2015
3. Background of the document under public consultation
•The document under public consultation took stock of the current situation of the USO, accounting for the recent market and regulatory developments, namely:
•the volume trend and decline of the traditional letter mail service in recent years:
•1992: +6% annually (average EU 12)
•2008-2012: 4% to 40% decline in EU volume
•the regulatory developments of USO in EU and worldwide (Australia, Canada, New Zealand, USA)
4. Issues identified
•More specifically, the DP identified and investigated the following five main categories of issues:
1.Current situation of USO;
2.Changing of the USO scope over the last 10 years;
3.USO and market players;
4.Net cost and unfair burden over the last 10 years;
5.USP designation and financing mechanisms.
5. Findings on current situation of USO
24 responding countries
Single piece registered mail
QoS targets
VAT exemption
Min. number of post access points
Min. number of postal offices
Bulk registered mail
Bulgaria France Greece Sweden
Ireland
Sweden
Norway
Sweden
11 countries
USO scope
6. •Recent changes in the USO:
•In many EU MS some modifications to the USO were already made, mainly related to liberalization and changes in the consumers’ needs or preferences
•Prospective changes in the USO:
•Bulgaria, Malta, Norway and The Netherlands have plans to further review the USO scope
•The pressure for changing the USO scope comes mainly from the USPs
Findings on changing of the USO scope over the last 10 years
7. Findings on USO and market players
•USO framework protects consumers and is meant to avoid social exclusion
•In some countries services provided outside the USO scope are considered able to avoid social exclusion
•Some services included in the USO scope have been provided at a loss over the last 10 years (e.g. single piece domestic letters and parcels)
8. •Direct appointment for USP designation (at an average of 9 years) – Germany is an exception
•In no countries operators have claimed for a “pay or play” mechanism
•Different ways of USO financing/mix of (i.e. by public funding/state budget, by the USP itself, by competitors, by financial contributions of consumers)
•Application for compensation in 3 countries (Italy, Norway and Bulgaria)
USP designation and financing mechanism and compensation
9. The questions under consultation
•Based on the gathered information and the outcomes described, ERGP addressed some key questions to the stakeholders, focused on:
•What could the common European minimum scope look like?
•What essential elements should be guaranteed?
•What essential elements need to be regulated?
•How essential is it to have a uniform base level taking the need for country specific solutions into consideration?
•Which user categories should be targeted by the USO? Individuals, individuals in rural areas, disabled in rural areas, small offices and/or home offices? Is it possible to identify changes in this respect in a forward looking perspective?
•Is it necessary to designate an USP for the provision of USO?
•In the perspective of a changing postal market, what could be a reasonable designation period and a relevant designation process?
US definition
•Does the current scope of the USO lead to excessive costs?
•Would changes in the scope of USO affect the possibility to finance US for instance by a compensation fund (and if so in what way and with what consequences)?
US financing mechanism
USP designation
•Could tariff regulation (e.g., affordable prices and VAT exemption) introduce a competitive distortion on postal markets?
•Could there be a reason for protecting competitors through the USO?
Competition
10. Thank you for your attention
Camilla Sebastiani
AGCOM
c.sebastiani@agcom.it
ERGP Stakeholders Workshop Bucharest, 19 November 2014