How Many Outlets if the USP Does Not Face Any USO? A Cross-country Comparison

The Postal Sector as a Vector of Financial Inclusion

“…By exploiting economies of scopes, the postal operator can generates additional income to sustain its post office network. Despite that, a regulator is unlikely to impose more stringent 8 Borsenberger et al (2011) estimate the number of postal retail outlets that a commercial postal firm would maintain in the absence of accessibility constraint. They show that, in the absence of USO, the number of post offices would be decreased by more than 60% in most of the countries considered.…”

“…In the less populated municipalities of the country, the universal service provider (USP) must maintain post offices, even if they operate neither profitably nor at full capacity. Evidence from selected countries in the Organization for Economic Cooperation and Development (OECD) demonstrates that in fact most post offices are non‐profitable (Borsenberger et al ). When a post office does not operate at full capacity, its otherwise unutilized potential can be used to provide financial services at low cost to consumers; in this way post offices are well placed to cheaply deliver financial services to financially excluded citizens.…”

“…Borsenberger et al () estimate the number of postal retail outlets that a commercial postal firm would maintain in the absence of accessibility constraint. They show that, in the absence of USO, the number of post offices would be decreased by more than 60% in most of the countries considered.…”

Measure of accessibility to postal services in France: A potential spatial accessibility approach applied in an urban region

“…More precisely, the accessibility principle associated with the universal service obligations (USO) defined at the European level has been translated into quantitative terms related to the size and localization (number of points and minimal distance) of the postal outlets network (Borsenberger, Joram, & Roy, 2011) in French postal law: 95% of French households in each department and 99% of French households at the national level ought to live under 10 km from a postal service point, and all municipalities of more than 10,000 inhabitants should have one service point for 20,000 inhabitants. In addition to the USO, La Poste must contribute to the development of the territory thanks to its country‐wide presence.…”