GAO-16-813R, International Mail: Information on Designated Postal

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441 G St. N.W.

Washington, DC 20548

September 26, 2016

Congressional Requesters

International Mail: Information on Designated Postal Operators and Universal Service in

Selected Countries

The United States Postal Service (USPS) exchanged approximately 940 million pieces of mail

with more than 190 countries in 2015. This mail exchange generally occurs under agreements

negotiated through the Universal Postal Union (UPU), a United Nations agency that facilitates

the exchange of international postal service. The UPU’s mission is to “to facilitate

communications between the inhabitants of the world by: guaranteeing the free circulation of

postal items over a single postal territory composed of interconnected networks.”

The UPU

facilitates this single global postal territory through multilateral agreements, some of which are

updated and signed by all member countries every 4 years, wherein member countries promise

to deliver mail sent from other member countries and to reimburse each other for the delivery of

that mail.

The UPU’s member countries agree to create this single postal territory by, among other things,

ensuring a right to universal postal service consisting of quality basic postal services over their

entire territory at affordable prices.

Each member country can implement this universal postal

service obligation (USO) as it deems appropriate. For example, each country can determine

what type and level of postal service, such as letter mail, that it believes meets the universal

service obligation.

Additionally, each country can designate one or more postal operators to

provide universal postal service. However, only two UPU member countries have selected more

than one designated postal operator.

Universal Postal Union, Constitution of the Universal Postal Union, “Preamble”.

UPU member countries are divided into six groups based on gross national income per capita and the cost for the

designated postal operators to deliver letters to determine the level of reimbursement due each country. For mail

flows from transitional (previously referred to as developing) countries, terminal dues rates are based primarily on

worldwide average costs and are typically lower than target (previously referred to as industrialized) countries for

lightweight mail items, such as letters. For mail flows from target countries, terminal dues are based on country-

specific postage rates (currently 70 percent of domestic postage rates).

Universal Postal Union, Universal Postal Convention, Article 3.

Letter mail is generally defined by the UPU as, among other things, letters and postcards, aerogrammes, printed

matter (newspapers, periodicals), addressed or unaddressed advertising materials, small packets, and literature for

the blind. Universal Postal Union, Universal Postal Convention, Article 13.

According to the UPU, Kyrgyzstan has two designated postal operators which are both licensed to provide

unrestricted postal services throughout the country (see Universal Postal Union, Country Information on the Universal

Postal Service: Kyrgyzstan, updated November 2014, accessed July 5, 2016,

http://www.upu.int/fileadmin/documentsFiles/theUpu/statusOfPostalEntities/kgzEn.pdf for more information). Bosnia

and Herzegovina has three designated postal operators that deliver in separate geographic zones within the country

(see Universal Postal Union, Country Information on the Universal Postal Service: Bosnia and Herzegovina,

accessed July 5, 2016, http://www.upu.int/fileadmin/documentsFiles/theUpu/statusOfPostalEntities/bihEn.pdf for

more information). In addition, other countries, such as Denmark in the case of Greenland, may have different

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You asked us to examine how countries without a mail delivery monopoly select designated

postal operators and assure that those operators can meet their universal service requirements.

This report describes how selected countries without a mail delivery monopoly: (1) selected their

designated postal operator; (2) define and implement their universal service obligation; and (3)

seek to assure that designated operators meet the universal service obligation. As a practical

matter, countries without a mail delivery monopoly may have multiple postal operators that

could provide universal delivery of letter mail.

To select countries for our analysis, we first identified the 50 countries that exchanged the

highest volume of mail with the United States using available USPS data on inbound and

outbound international mail volume to and from the United States for 2015. We used information

from the UPU on these countries’ postal services to determine which of those 50 countries did

not have a letter delivery monopoly.

We then selected 10 of these countries based on

characteristics that would provide us a diverse sample of countries that (1) did not have a letter

mail delivery monopoly, and (2) exchanged the most mail with the United States. Specific

characteristics we considered included: (1) the extent of privatization of designated postal

operators,

(2) level of economic development,

(3) European Union (EU) membership status,

and (4) availability of information in English. We selected the following countries for analysis: the

Czech Republic, Fiji, France, Germany, Japan, the Netherlands, New Zealand, Philippines,

Singapore, and the United Kingdom (UK). These countries represented about 27 percent of the

total volume of mail the United States exchanged internationally in 2015. We assessed the

reliability of the data used to make our country selections by reviewing documentation related to

how the data are collected and processed. We found these data to be sufficiently reliable for the

limited purpose of selecting countries for our review.

For all of our objectives, we reviewed information available on the national government

agencies responsible for regulating their postal industry (the postal regulatory agency),

designated postal operator websites, annual reports from postal regulatory agencies and postal

operators, and information collected by the UPU from postal operators. To examine how the

countries we selected defined and implemented their USO, we used elements of universal

service identified by the Postal Regulatory Commission (PRC) in its 2008 report on universal

operators providing postal service in their dependent territories (see Universal Postal Union, Country Information on

the Universal Postal Service: Denmark, updated August 2013, accessed September 7, 2016,

http://www.upu.int/fileadmin/documentsFiles/theUpu/statusOfPostalEntities/dnkEn.pdf for more information).

Universal Postal Union, Status of Postal Entities, accessed June 29, 2016, http://www.upu.int/en/the-upu/status-of-

postal-entities/about-status-of-postal-entities.html.

As several countries without a mail delivery monopoly have privatized their designated postal operator, we wanted to

include countries with privatized and non-privatized designated postal operators to find any differences between how

they implemented their country’s universal service obligations. We determined the extent of privatization from UPU

sources, such as the UPU’s Status of Postal Entities website, and postal administration and regulatory websites for

each country we considered.

To determine economic development, we used the UPU’s categorization of member countries based on its postal

development index into six groups from industrialized countries to developing countries and selected a range of

countries.

EU countries must ensure that their universal service obligations provide for the collection, sorting, transport, and

distribution of postal items weighing up to 2 kilograms and postal packages up to 10 kilograms, as well as services for

registered items and insured items in both categories and meet certain standards. In addition, independent entities

set the universal service standards and monitor progress toward meeting them. As a result, we selected countries

both inside and outside of the EU, as EU countries are subject to the same general requirements for universal

service, as well as specific requirements set by their own national governments.

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postal service to provide a basic framework to collect information about our selected countries.

These elements include: geographic scope, product range, consumer access, delivery and

collection, pricing, and service quality.

We added information on how universal service was

funded for each country by collecting and analyzing information from various sources, including

a 2016 USPS Inspector General report on how foreign countries fund their USO, as well as

other reports by and websites of postal regulatory agencies and postal operators.

collected and analyzed information we found on postal regulatory-agency, postal-operator, and

UPU websites to complete this framework for all our selected countries. We did not

independently verify this information with any foreign postal operator or government, but

corroborated the information we obtained with USPS and U.S. State Department officials.

We conducted this performance audit from January 2016 to September 2016 in accordance with

generally accepted government auditing standards. Those standards require that we plan and

perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our

findings and conclusions based on our audit objectives. We believe that the evidence obtained

provides a reasonable basis for our findings and conclusions based on our audit objectives.

In summary, based on the information we obtained on the 10 countries in our review, there was

little variation in how a designated postal operator is selected, but significant variation in terms

of how universal service is defined and implemented, and the mechanisms used to assure the

USO is being met, for example:

• Nine of the 10 countries formally selected their current designated postal operator

directly or indirectly via statute.

• All 10 countries include similar elements in their USO definition, but have wide variation

in how they implement elements of their USO.

• Each of the 10 countries has a government agency that regulates the country’s

designated postal operators to ensure that these universal service obligations are met.

Some of these agencies have the power to direct postal operators to take actions to fulfill

the USO or fine the designated postal operator if these obligations are not met.

Selected Countries Generally Identified Designated Postal Operators through Statute

Based on the information we obtained about the countries in our review, such as annual reports

and investor presentations and other documents, 9 out of the 10 countries formally selected

their current designated postal operators either directly through statute or by a government

Postal Regulatory Commission, Report on Universal Postal Service and the Postal Monopoly (Washington D.C.:

2008). In the United States, the PRC is an independent federal regulatory agency that has regulatory oversight over

USPS. For additional information on PRC’s oversight activities and USPS performance information, see

http://www.prc.gov/ and https://www.usps.com/.

The Commission identified an additional element of universal service—an enforcement mechanism—which we

cover in describing how the countries we selected seek to assure that designated operators meet the universal

service obligation.

Office of Inspector General, United States Postal Service, Funding the Universal Service Requirement, RARC-WP-

16-005 (Arlington, VA: Mar. 21, 2016).

The State Department represents the United States in multinational postal organizations, such as the UPU, and

therefore has current knowledge of foreign postal operators and postal regulatory and oversight agencies.

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agency as directed by statute (see table 1). The exception is Germany, which has not formally

selected the country’s largest postal operator, Deutsche Post AG, as its designated postal

operator. However, according to the German postal regulatory agency, Deutsche Post AG, with

over 87 percent of the licensed letter market in Germany in 2013, acts as the country’s

designated postal operator.

All 10 countries have one postal operator registered with the UPU

as that country’s sole designated postal operator.

Table 1: Selection of Designated Postal Operators in Selected Countries

Country

Designated postal operator

How selected

Czech Republic

Czech Post

Postal regulatory authority named the

designated postal operator, as required by

statute

Fiji

Post Fiji

Postal operator designated in statute

France

La Poste

Postal operator designated in statute

Germany

Germany has not formally designated a

postal operator. Deutsche Post AG acts as

the designated postal operator.

N/A

Japan

Japan Post Company, Ltd. (Japan Post)

Postal operator designated in statute

Netherlands

Royal PostNL N.V.

Postal regulatory authority named the

designated postal operator, as required by

statute

New Zealand

New Zealand Post Ltd. (New Zealand Post)

Postal operator designated in statute

Philippines

Philippine Postal Corporation (PHLPost)

Postal operator designated in statute

Singapore

Singapore Post, Ltd. (Singapore Post)

Postal regulatory authority named the

designated postal operator, as required by

statute

United Kingdom

Royal Mail Group, Ltd. (Royal Mail)

Postal regulatory authority named the

designated postal operator, as required by

statute

Source: GAO analysis. | GAO-16-813R

Note: GAO analyzed information on the websites of the Universal Postal Union and of the postal regulatory agencies

and designated postal operator in selected countries.

More information on the postal systems in each of these countries can be found in enclosure I.

Selected Countries Have Broad Similarities in their Universal Service Definition with

Differences in Implementation

Based on the information we obtained on the 10 selected countries in our review, each of the

countries, overall, included similar elements in their definitions of their universal service

obligations. For example, when defining their universal service, all 10 countries mentioned one

or more of the following: the types of products to be delivered, pricing, or how often mail was to

be delivered and collected (see table 2).

Bundesnetzagentur, Annual Report 2014 (Bonn, Germany, 2015).

With respect to the United States, Title 39 of the U.S. Code states that USPS “shall have as its basic function the

obligation to provide postal services to bind the Nation together through the personal, educational, literary, and

business correspondence of the people.

[USPS] shall provide prompt, reliable, and efficient services to patrons in all

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Table 2: Summary of Universal Postal Service Definitions for Selected Countries

Country

Summary definition of universal postal service

Czech Republic

“Quality postal services must be provided nationwide at cost based, affordable prices.”

Fiji

“Provide all in Fiji with a universal letter service; deliver standard letters within Fiji at a

uniform price; and ensure that the postal service is accessible on an equitable basis to all in

Fiji.”

France

“The provision of services for correspondence, newspapers and periodicals, catalogues,

parcels, and registered and insured items, among other postal items.”

Germany

“Access, delivery and collection, pricing, and service quality requirements that apply

nationwide to a range of postal products.”

Japan

“Postal services should be provided at the lowest possible expense, on a nationwide scale

and in a manner fair to all.”

Netherlands

“Provide required services at an affordable price under uniform conditions.”

New Zealand

“Provide delivery throughout New Zealand with certain frequencies and a defined network of

post offices and post boxes.”

Philippines

“Operate a nationwide postal system with a network that makes ordinary mail service

available to all settlements in the country.”

Singapore

“Services for the conveyance and delivery of letters to any person in Singapore who requests

such services; and providing and maintaining post offices and posting boxes throughout

Singapore.”

United Kingdom

(UK)

“The delivery and collection of mail everywhere in the UK at affordable and uniform prices,

every working day (and on Saturday for letters).”

Source: Information GAO obtained from the websites of the Universal Postal Union and of the postal regulatory

agencies and designated postal operator in selected countries. | GAO-16-813R

For geographic scope, all countries defined and implemented service as nationwide. However,

the information we obtained also showed that each country implemented the other specific

elements of universal postal service differently: product range, consumer access, delivery and

collection, pricing, and service quality. In addition, all of our selected countries had different

definitions for and levels of specificity for how these elements were to be implemented by their

designated postal operator charged with providing universal service. For example:

• Customer Access: New Zealand Post is required to maintain a network of 1,910,010

delivery points (or addresses for the delivery of mail) throughout the country, while

Singapore Post is required to “[provide and maintain] letter boxes and post offices

throughout Singapore.”

• Delivery and Collection Requirements: France’s La Poste must deliver and collect postal

items covered by the universal service every business day (6 days per week). New

Zealand Post is required to make deliveries at least 3 days per week to 99.88 percent of

delivery points and deliveries between 1 and 5 days per week to the remainder of

delivery points and there are no collection requirements.

areas and shall render postal services to all communities. The costs of establishing and maintaining the Postal

Service shall not be apportioned to impair the overall value of such service to the people.” 39 U.S.C. § 101(a).

New Zealand information source: Ministry of Business, Innovation, and Employment, Postal Deed of

Understanding, last updated March 15, 2016, accessed May 18, 2016, http://www.mbie.govt.nz/info-services/sectors-

industries/technology-communications/postal-services/postal-deed-of-understanding.

Singapore information source: Universal Postal Union, Status of Postal Entities, accessed March 31, 2016,

http://www.upu.int/fileadmin/documentsFiles/theUpu/statusOfPostalEntities/sgpEn.pdf.

France information source: Universal Postal Union, Status of Postal Entities, accessed Apr.11, 2016,

http://www.upu.int/fileadmin/documentsFiles/theUpu/statusOfPostalEntities/fraEn.pdf.

New Zealand information source: Ministry of Business, Innovation, and Employment, Postal Deed of Understanding.

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• Pricing: Japan Post must provide services at the “least expensive rates” possible.

Postage rates must be uniform nationwide and prices for mail less than 20 grams must

not exceed 80 Yen.

The prices of mailing periodicals, academic publications,

agricultural seeds, and items for the blind must be discounted. The Philippines’ PHLPost

is required to have prices sufficient to finance the overall cost of providing the varied

range of postal delivery and messenger services as well as the expansion and

continuous upgrading of service standards.

For more detailed information on how each of the 10 selected countries define and implement

their universal service obligations, see enclosure I.

In addition to how countries define and implement universal postal service, we found information

that indicated the selected countries also varied in how they fund universal service, either by

requiring the designated postal operator to fund universal service out of its own revenues or by

paying the designated postal operator out of public funds to cover those costs. For example,

Japan Post partially funds its universal service obligations out of its non-postal (such as banking

and insurance) revenues while the government of Fiji subsidizes Post Fiji to provide rural mail

service and the government of France has provided grants, tax exemptions, and lines of credit

to La Poste to provide universal service.

Selected Countries Use a Variety of Mechanisms to Assure Universal Service Obligations

Are Met

Based on the information we obtained about the 10 selected countries in our review, all 10

countries have a regulatory agency that monitors the country’s postal industry, including the

designated postal operator. However, they use a variety of mechanisms to ensure their USO is

being met. For example, all but one country publishes performance information for the

designated postal operator, and five countries give their postal regulatory agency the power to

direct postal operators to take actions to fulfill the USO or to fine the designated postal operator

if these obligations are not met. Specifically:

• Each selected country has a government agency (i.e., the postal regulatory agency) that

regulates the country’s designated postal operators. Five countries have postal

regulatory agencies that are described as independent oversight agencies, and the other

five have postal regulatory agencies that are part of a government ministry. These

agencies may also have regulatory authority over other industries, such as other

communication areas (such as telecommunications) or have regulatory responsibilities

for broader consumer protection or other government-controlled corporations.

• In 9 of the 10 countries, either the designated postal operator or the postal regulatory

agency publish or are required to publish postal quality service standards and

performance results on a quarterly or annual basis. For example, the UK’s postal

regulatory agency, the Office of Communications, issues a monitoring report each year

Approximately $0.78 in July 2016.

Japan information source: Consumer Postal Council, Universal Postal Service in Major Economies (Arlington VA,

June 2015) and Universal Postal Union, Country Information on the Universal Postal Service: Japan, accessed March

31, 2016, http://www.upu.int/fileadmin/documentsFiles/theUpu/statusOfPostalEntities/jpnEn.pdf.

Philippines information source: Universal Postal Union, Status of Postal Entities: Philippines accessed Apr. 11, 2016,

http://www.upu.int/fileadmin/documentsFiles/theUpu/statusOfPostalEntities/phlEn.pdf.

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for the postal sector that includes performance results for Royal Mail and other postal

operators in the UK. These performance results included, among other things,

performance against delivery targets by class of mail and the number of postal code

areas where these delivery targets were not met.

• In five of the selected countries, the postal regulatory agency can direct the designated

operator or any postal operator to take action to provide specific postal services to fulfill

their universal service obligations.

• In five selected countries, the postal regulatory agency can also impose fines on postal

operators for not meeting their universal service obligations. For example, the Info-

communications Development Authority can fine Singapore Post $50,000 in Singapore

dollars per month per violation for non-compliance with these standards.

For more information on how the 10 countries enforce their universal service obligation, see

enclosure I.

_____

We provided a draft of this product to USPS, PRC, and the U.S. Department of State for their

review and comment. USPS and the State Department provided technical comments that were

incorporated as appropriate. PRC did not provide any comments. We are sending copies of this

report to the Postmaster General of USPS, the Acting Chairman of the PRC, the Secretary of

State, and other interested parties. In addition, the report is available at no charge on the GAO

website at http://www.gao.gov.

If you or your staff have any questions about this report, please contact me at (202) 512-2834 or

[email protected]. Contact points for our Offices of Congressional Relations and Public Affairs

may be found on the last page of this report. In addition to the contact named above, Derrick

Collins (Assistant Director), Greg Hanna (Analyst in Charge), Camilo Flores, Kenneth John,

Mike Mgebroff, and Amy Rosewarne made key contributions to this report.

Lori Rectanus

Director, Physical Infrastructure Issues

Enclosure

For example, the Office of Communications’ delivery standards state that 93 percent of all first class letter items in

the UK should be delivered by the next day after posting and 98 percent of all second class mail items should be

delivered by the third day after collection. According to the Office of Communications, Royal Mail did not meet next

day delivery standard for 9 of the 118 UK postal code areas where this standard applied in the 2014—2015

measurement period although the measured results were within the acceptable margin for error for Ofcom’s

calculation. Office of Communications, Annual Monitoring Update on the Postal Market, Financial Year 2014-2015

(London, United Kingdom: Nov. 27, 2015). See enclosure I for more examples of how each country defined and

monitored adherence to their postal quality of service standards.

Approximately $37,000 in July 2016.

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List of Requesters

The Honorable Jason Chaffetz

Chairman

The Honorable Elijah E. Cummings

Ranking Member

Committee on Oversight and Government Reform

House of Representatives

The Honorable Mark Meadows

Chairman

The Honorable Gerald E. Connolly

Ranking Member

Subcommittee on Government Operations

Committee on Oversight and Government Reform

House of Representatives

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Enclosure I: Summaries of Selected Countries’ Postal Environments

Designated Postal Operator and the Postal Environment

Total National Mail Volume: 2.4 billion domestic letter post items (2014).

Designated Operator: Czech Post, a government-owned enterprise (est.1993).

Postal Regulator: The Czech Telecommunications Office (CTO) is a government agency which:

• maintains a list of operators;

• performs analyses of the general availability of the basic services;

• examines the need to impose the obligation to provide and ensure the basic services;

and

• makes decisions to grant postal licenses and monitors whether the operators meet their

universal and quality of service obligations.

In addition, the Czech Ministry of Industry and Trade, a government agency, administers postal

policy and legislation, issues postage stamps and represents the Czech Republic to the

Universal Postal Union (UPU).

Selection of Designated Postal Operator: On February 22, 2013, CTO granted Czech Post a

license as the designated postal operator and universal service provider. The license requires

Czech Post to perform basic services and duties as the Czech Republic’s UPU representative.

Postal Operator Licensing or Registration System: Postal operators are required to notify CTO

of their business activities prior to initiating services but are not required to obtain a license.

We collected and analyzed information we found on postal regulatory agency, postal operator and Universal Postal

Union websites to document information for all our selected countries. We interviewed USPS and U.S. State

Department officials to corroborate the information we collected. We did not independently verify this information with

any foreign postal operator or government.

Universal Postal Union, Global or Regional Estimates: Czech Republic, accessed June 14, 2016,

http://pls.upu.int/pls/ap/ssp_report.main?p_language=AN&p_choice=BROWSE.

Public mail delivery was established by a predecessor to Czech Post in 1918.

Universal Postal Union, Status and Structures of Postal Entities: Czech Republic, updated 2013, accessed Apr. 11,

2016, http://www.upu.int/fileadmin/documentsFiles/theUpu/statusOfPostalEntities/czeEn.pdf.

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Only the universal service provider, Czech Post, is required to have a license for postal

operations.

Other Licensed or Registered Operators: CTO reported in 2016 that there were a total of 28

postal operators in the Czech Republic.

In addition to Czech Post, postal operators provide

domestic and international letter services, as well as domestic and international parcel and

express post services.

Universal Service Obligation

Definition: Quality universal postal services must be provided nationwide at cost-based,

affordable prices.

Geographic Scope: Nationwide

Product Range: Universal service obligations include the delivery of postal items up to 2

kilograms, parcels up to 10 kilograms, money by postal order, registered and insured items, free

delivery of postal items up to 7 kilograms for the blind, and services that have to be provided

pursuant to UPU membership.

Consumer Access: Residents in rural areas must not be farther than 10 kilometers from a post

office. Residents in urban areas must not be farther than 2 kilometers from a post office.

Customers in areas with more than 10,000 inhabitants must not be more than 1 kilometer from

the nearest letter box. In rural areas, one letter box in every residential unit is required.

Delivery and Collection: Postal operators must deliver and collect mail at least once each

working day (5 days per week).

Pricing: Prices must be affordable and cost based. CTO is responsible for regulating domestic

and international postal rates charged to Czech Post customers.

Service Quality: CTO requires 92 percent of mail to be delivered in one day after collection.

Funding of Universal Service Obligation: Czech Post may request a designated government

fund pay for the net costs of universal service that are determined to represent an unfair

financial burden. CTO determines the total amount of net costs that represent an unfair financial

burden. Reimbursements for unfair financial burdens cannot exceed 600 million Czech koruna

Universal Postal Union, Status and Structures of Postal Entities: Czech Republic.

Czech Telecommunications Office, Database of Postal Operators, accessed June 30, 2016,

https://www.ctu.eu/vyhledavaci-databaze/evidence-provozovatelu-poskytujicich-nebo-zajistujicich-postovni-sluzby.

Universal Postal Union, Status and Structures of Postal Entities: Czech Republic and Universal Postal Union,

Country Information on Universal Postal Service: Czech Republic, information provided to the UPU by the Czech

Ministry of Industry and Trade on June 14, 2013, accessed June 2, 2016,

http://www.upu.int/fileadmin/documentsFiles/activities/regulatoryIssues/czeEn.pdf.

Czech Telecommunication Office, Universal Services, accessed May 18, 2016, https://www.ctu.eu/basic-services.

Universal Postal Union, Country Information on Universal Postal Service: Czech Republic.

Czech Post, Annual Report 2015, (Prague, Czech Republic, Mar. 18, 2016).

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(CZK) for 2016, and 500 million CZK for 2017 and subsequent years.

Czech Post’s unfair

financial burden for 2013 was estimated to be 27 million Euros.

During 2015, Czech Post

received 700 million CZK from the compensation fund as reimbursement for unfair universal

service costs.

16,

Mechanism for Enforcing the Universal Service Obligation

CTO publishes the results of performance against quality of service standards and has the

authority to levy fines for non-compliance with service quality standards.

About $25 million and $20 million, respectively, in July 2016.

Czech Post, Annual Report 2015.

About $30 million in July 2016.

About $29 million in July 2016.

Czech Post, Annual Report 2015.

Czech Telecommunications Office web site, accessed May 18, 2016, http://www.ctu.eu/postal-services.

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Designated Postal Operator and the Postal Environment

Total National Mail Volume: No information found.

Designated Postal Operator: Post Fiji, Limited (Post Fiji), a government-owned corporation

under the Ministry of Public Enterprises and the Ministry of Finance (est. 1996).

Postal Regulator: The Department of Communications regulates the postal sector by developing

and implementing policies, regulations, and legislation concerning postal communications. The

Board of Post Fiji is accountable to the Government of Fiji for Post Fiji’s overall performance

and for performing its functions consistent with sound financial practice. The Fiji Commerce

Commission is responsible for approving Post Fiji price proposals.

Selection of the Designated Postal Operator: Post Fiji was established as a corporate entity in

1996 as the designated postal operator for Fiji.

Postal Operator Licensing or Registration System: The Department of Communication regulates

the legal framework of the communication industry, including postal service. According to

information collected by the Universal Postal Union, private postal operators operate openly and

are not regulated.

Other Licensed or Registered Operators: Currently, there are six private postal operators in Fiji,

as well as other smaller postal operators.

Universal Service Obligation

Definition: According to Post Fiji, universal postal service consists of providing all in Fiji with a

universal letter service, delivering standard letters within Fiji at a uniform price, and ensuring that

the postal service is accessible on an equitable basis to all in Fiji.

Geographic Scope: Nationwide

Product Range: Post Fiji operates in a competitive market and does not have a monopoly for

the conveyance of letter post products.

Public mail delivery was established by a predecessor to Post Fiji Limited in 1871.

Universal Postal Union, Status and Structures of Postal Entities: Fiji, accessed Apr. 11, 2016,

http://www.upu.int/fileadmin/documentsFiles/theUpu/statusOfPostalEntities/fjiEn.pdf.

Universal Postal Union, Status and Structures of Postal Entities: Fiji. No information about the number of other

smaller postal operators in Fiji was available.

Post Fiji Limited, About Us: Obligations, accessed May 20, 2016, http://www.postfiji.com.fj/pages.cfm/about-

us/obligations.html.

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Consumer Access: No information found.

Delivery and Collection: No information found.

Pricing: Post Fiji sets postal rates. All price increases must be justified and submitted to the

Government of Fiji Commerce Commission for approval.

Service Quality: No information found.

Funding of Universal Service Obligation: Post Fiji has an obligation to make a profit. The

Government of Fiji subsidizes rural postal services to a certain degree.

Mechanism for Enforcing the Universal Service Obligation

The Department of Communications’ core responsibility is to facilitate the provision of postal

services that are accessible and affordable. The Department of Communications does this by

administering postal legislation.

Universal Postal Union, Status and Structures of Postal Entities: Fiji.

Department of Communications, Welcome to the Department of Communications Website, accessed June 15,

2016, http://www.communications.gov.fj/.

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Designated Postal Operator and the Postal Environment

Total National Mail Volume: 12.9 billion letter post items during (2014).

Designated Postal Operator: La Poste, a limited public company (est. 2010).

The Government

of France is the majority shareholder.

Postal Regulator: The Electronic Communications and Postal Regulation Authority (ARCEP), an

independent government agency, is responsible for ensuring the opening and functioning of the

postal market while safeguarding universal service, including the market’s financial stability.

Postal Operator Licensing or Registration System: ARCEP issues licenses for postal activities

open to competition. Postal operators delivering correspondence must hold a license. A license

is not required to deliver items other than correspondence.

Other Licensed or Registered Operators: No information found on the number of licensed

operators.

Selection of Designated Postal Operator: In 2010, La Poste was named as France’s designated

postal operator and universal service provider for a period of 15 years, beginning January 1,

2011.

Universal Service Obligation

Definition: Universal postal service covers the provision of services for correspondence,

newspapers and periodicals, catalogs, parcels, and registered and insured items, among other

postal items.

Geographic Scope: Nationwide

Universal Postal Union, Global or Regional Estimates: France, accessed June 14, 2016,

http://pls.upu.int/pls/ap/ssp_report.main?p_language=AN&p_choice=BROWSE. France’s data includes international

mail services.

La Poste became a state-owned entity in 1991 and became a limited liability company in 2010. Public mail delivery

was established by a predecessor to La Poste in 1597.

In addition, the French Minister for Posts develops the regulations applicable to the postal sector, is responsible for

monitoring the legal, economic and financial aspects of the postal sector and represents France at the Universal

Postal Union and at the European Union concerning postal matters.

Universal Postal Union, Status and Structures of Postal Entities: France, accessed March 31, 2016,

http://www.upu.int/fileadmin/documentsFiles/theUpu/statusOfPostalEntities/fraEn.pdf.

Page 15 GAO-16-813R International Mail

Product Range: Universal postal service covers domestic and cross-border postal services for

the following items: correspondence weighing up to 2 kilograms, including insured and

registered items; newspapers and periodicals weighing up to 2 kilograms; catalogs and printed

material weighing up to 2 kilograms; parcels weighing up to 20 kilograms; insured items; and

literature for the blind.

Consumer Access: At least 99 percent of the national population and at least 95 percent of

departmental populations must be less than 10 kilometers from a post office.

Municipalities

with over 10,000 people must have at least one post office per 20,000 inhabitants. No more

than 10 percent of a department’s population can be more than 5 kilometers or 20 minutes by

car from a La Poste facility.

There must be at least 17,000 post office branches throughout the

country.

Delivery and Collection: Postal items covered by the universal service must be delivered and

collected on every working day (6 days per week).

Pricing: ARCEP regulates pricing for the provision of universal postal service products. La Poste

must inform ARCEP of price adjustments. Plans to increase prices can be modified or

suspended if universal service obligations are not met. Prices must be affordable and reflect

costs. A uniform tariff is applied throughout the nation.

Service Quality: The Minister for Posts sets the service quality requirements for universal

service products. Eighty-five percent of priority domestic mail must be delivered the next day.

No more than 5 percent of priority domestic mail can be delivered more than 2 days after

mailing. More than 90 percent of parcels must be delivered within 2 days and more than 95

percent of parcels must be delivered within 3 days.

Funding of Universal Service Obligation: An independent body monitors La Poste’s universal

service obligation costs. If ARCEP determines that La Poste incurs an unfair financial burden

due to its universal service obligations, La Poste can request compensation for the unfair

burden from a fund consisting of licensed operator and La Poste contributions.

La Poste also

receives subsidies to help maintain the existing post office network in the form of tax

exemptions and government subsidies. In addition, La Poste uses revenue from non-mail

services, such as its postal banking system, to help maintain universal postal service. To

compensate La Poste for delivering the press during 2013 through 2015, the Government of

Universal Postal Union, Status and Structures of Postal Entities: France.

A department is a governmental body in France.

Universal Postal Union, Status and Structures of Postal Entities: France.

Consumer Postal Council, Universal Postal Service in Major Economies, June 2015.

ARCEP calculates contributions to the fund based on the number of universal service postal items carried by each

operator. Consumer Postal Council, Universal Postal Service in Major Economies.

Page 16 GAO-16-813R International Mail

France provided La Poste with a 597 million Euro grant.

La Poste will receive tax exemptions

totaling 850 million Euros from 2013 through 2017.

Mechanism for Enforcing the Universal Service Obligation

The Minister for Posts develops regulations applicable to the postal sector. The Minister

negotiates and signs the contract concluded with La Poste, which defines the content,

characteristics, and quality of service objectives of universal postal service. The Minister is

responsible for monitoring the legal, economic, and financial aspects of the postal sector.

ARCEP monitors compliance with the standards. ARCEP ensures that La Poste conducts

quality of service testing. ARCEP also monitors accounting and pricing, conducts investigations,

and can impose administrative or financial sanctions on La Poste or licensed postal operators.

Approximately $660 million in July 2016.

Approximately $940 million in July 2016.

European Commission Press Release, State Aid: Commission approves two public service compensation

measures for the French post office, (Brussels, Belgium, May 26, 2014).

Universal Postal Union, Status and Structures of Postal Entities: France.

Page 17 GAO-16-813R International Mail

Designated Postal Operator and the Postal Environment

Total National Mail Volume: 20.5 billion domestic letter post items (2014).

Designated Postal Operator: Germany has not formally designated a postal operator with the

Universal Postal Union; however, Deutsche Post AG is the practical equivalent, as described

below. Deutsche Post AG has been a private company listed on the German stock exchange

since November 2000.

As of March 2016, The Government of Germany owned about 21

percent of the company’s stock.

Selection of Designated Postal Operator: The duty to ensure universal service rests on the

Federal Network Agency

for Electricity, Gas, Telecommunications, Post, and Railway (the

Network Agency), an independent government agency within the Federal Ministry of Economics

and Technology.

The Network Agency can impose obligations or procure elements of the

universal service only if the market does not provide sufficient services. Deutsche Post AG fulfils

the legal requirements for universal postal service voluntarily and considers these services as

profitable commercial products.

Postal Regulator: The Network Agency’s core task is to ensure compliance with the postal laws

and respective ordinances, guaranteeing the liberalization and deregulation of the postal market

via non-discriminatory network access and efficient system charges.

Postal Operator Licensing or Registration System: The Network Agency grants licenses for the

conveyance of letter post items up to 1 kilogram. Licensees must meet requirements related to

performance, expertise and reliability, and public safety and order.

Other Licensed or Registered Operators: According to the Network Agency’s 2014 annual

report, around 600 carriers handled letters up to 1,000 grams.

Universal Service Obligation

Universal Postal Union, Global or Regional Estimates: Germany, accessed June 14, 2016,

http://pls.upu.int/pls/ap/ssp_report.main?p_language=AN&p_choice=BROWSE.

Public mail delivery was established by a predecessor to Deutsche Post AG in 1646.

The Federal Network Agency for Electricity, Gas, Telecommunications, Post, and Railway, Annual Report 2014,

(Bonn, Germany, Apr. 1, 2015); WIK Consulting, Universal Postal Service and Competition: Experience from Europe

(Bad Honnef, Germany, Sept. 23, 2011); and Consumer Postal Council, Universal Postal Service in Major

Economies, June 2015.

Universal Postal Union, Status and Structures of Postal Entities: Germany, accessed March 31, 2016,

http://www.upu.int/fileadmin/documentsFiles/theUpu/statusOfPostalEntities/deuEn.pdf.

The Federal Network Agency for Electricity, Gas, Telecommunications, Post, and Railway, Annual Report 2014.

Page 18 GAO-16-813R International Mail

Definition: Universal service obligations include access, delivery and collection, pricing, and

service quality requirements that apply nationwide to a range of postal products.

Geographic Scope: Nationwide

Product Range: Universal service includes correspondence up to 2 kilograms and addressed

parcels weighing up to 20 kilograms.

Consumer Access: There must be at least 12,000 fixed-location posting points. There must be

at least one fixed location facility in municipalities with more than 4,000 residents and urban

areas must have a permanent facility within 2,000 meters. All other locations must be served by

mobile postal service units.

Delivery and Collection: Deliveries and collections must occur 6 days per week.

Pricing: The Network Agency regulates prices. Deutsche Post AG is subject to price regulation

for the conveyance of written information up to 1 kilogram. Prices must be affordable.

Service Quality: Eighty percent of domestic priority letters must be delivered the next working

day after posting. Ninety-five percent of domestic priority letters must be delivered within 2

working days of posting. Eighty percent of parcels must be delivered within 2 working days of

posting.

Funding of Universal Service Obligation: Universal service is financed by Deutsche Post AG,

German government funding of pension obligations, and sales of real estate given to Deutsche

Post AG by the German government. The Network Agency has the authority to establish a

universal service fund for financing a universal service obligation.

Mechanism for Enforcing the Universal Service Obligation

The Network Agency monitors quality of service standards and publishes its results. If the

Network Agency finds cases where universal service obligations are not being met, it can issue

orders to the dominant postal operator, Deutsche Post AG, to provide universal service or

contract with other postal operators to do so.

Universal Postal Union, Status and Structures of Postal Entities: Germany.

Universal Postal Union, Country Information on Universal Postal Service: Germany, information provided by the

German Federal Ministry of Economic Affairs and Energy to the UPU on Sept. 23, 2013, accessed June 2, 2016,

http://www.upu.int/fileadmin/documentsFiles/activities/regulatoryIssues/deuEn.pdf.

Universal Postal Union, Country Information on Universal Postal Service: Germany.

Universal Postal Union, Status and Structures of Postal Entities: Germany.

Universal Postal Union, Country Information on Universal Postal Service: Germany.

Page 19 GAO-16-813R International Mail

Postal Environment and Designated Postal Operator

Total National Mail Volume: 18.1 billion domestic letter post items (2014).

Designated Postal Operator: Japan Post Company, Ltd. (Japan Post) is a private company (est.

2007).

Postal Regulator: The Ministry of Internal Affairs and Communications (MIC) is the government

agency that is responsible for administration of postal and postal financial service and

representing Japan to the Universal Postal Union.

Selection of Designated Operator:

In April 2003, a new public corporation under the name

Japan Post Service Co., Ltd. was established to replace the Postal Services Agency, the

government agency that provided postal services in Japan. Japan Post Service Co., Ltd.

remained under government ownership until October 2007 when the Japan Post Company was

established as a private company responsible for universal postal services. Other than Japan

Post, there have been no other entrants to provide universal postal services.

Postal Operator Licensing or Registration System: MIC licenses postal operators to provide

general correspondence and delivery services.

Other Licensed or Registered Operators: As of March 2015, there were 436 licensed postal

operators that offer limited correspondence delivery services. MIC licenses postal operators to

deliver items that (1) have dimensions totaling more than 90 centimeters or weigh over 4

kilograms, (2) are to be delivered within 3 hours of being mailed, or (3) have a delivery charge

exceeding 1,000 Japanese Yen.

Universal Service Obligation

Definition: Postal services should be provided at the lowest possible expense, on a nationwide

scale and in a manner fair to all.

Universal Postal Union, Global or Regional Estimates: Japan, accessed June 14, 2016,

http://pls.upu.int/pls/ap/ssp_report.main?p_language=AN&p_choice=BROWSE.

Public mail delivery was established in 1871.

Universal Postal Union, Status and Structures of Postal Entities: Japan, accessed March 31, 2016,

http://www.upu.int/fileadmin/documentsFiles/theUpu/statusOfPostalEntities/jpnEn.pdf.

Ministry of Communications, 2015 White Paper, accessed June 25 2016,

http://www.soumu.go.jp/johotsusintokei/whitepaper/eng/WP2015/2015-index.html.

Approximately $10 in July 2016.

Universal Postal Union, Status and Structures of Postal Entities: Japan.

Page 20 GAO-16-813R International Mail

Geographic Scope: Nationwide

Product Range: Universal service in Japan includes letter post (up to 500 grams), books,

newspapers and periodicals, parcels (up to 30 kilograms), and supplementary postal services,

such as registered and express services.

Consumer Access: Japan’s universal service obligation requires a national network of collection

boxes. As of July 2015, the total number of letter boxes was 181,521.

Delivery and Collection: Ordinary mail is to be delivered within 3 days after posting. Universal

service includes the collection of mail items from post boxes 7 days a week and delivery of

letters up to 4 kilograms to all households and companies 6 days a week.

Pricing: Universal postal services are required to be provided at the least expensive rates

possible. The price for mail weighing less than 20 grams must not exceed 80 Japanese Yen.

Japan Post Ltd. sets postal rates and notifies MIC prior to setting rates. The prices of mailing

some periodicals and literature for the blind must be discounted and approved by MIC.

Academic publications and agricultural seeds must also be considered discounted mail.

Service Quality: Deliveries of all mail items must be made in 3 days.

Funding of Universal Service Obligation: The Government of Japan does not provide postal

operator subsidies and has not established a universal service compensation fund. However,

universal postal service is partially underwritten by revenue from Japan Post’s other services,

such as banking and life insurance.

Mechanism for Enforcing the Universal Service Obligation

MIC monitors postal service quality standards and publishes the results. In addition, Japan Post

conducts an annual survey to determine the percentage of mail delivered within the targeted

number of days, with the results made public.

Universal Postal Union, Status and Structures of Postal Entities: Japan.

Japan Post Group, Japan Post Group 2015 Annual Report (Tokyo, Japan, July 2015).

Consumer Postal Council, Universal Postal Service in Major Economies, June 2015.

Approximately $0.78 in July 2016.

Consumer Postal Council, Universal Postal Service in Major Economies.

Page 21 GAO-16-813R International Mail

Postal Environment and Designated Postal Operator

Total National Mail Volume: 2.7 billion domestic letter post items (2014).

Designated Operator: PostNL N.V., a public company listed on the Amsterdam stock exchange

(est. 2011).

Postal Regulator: The Authority for Consumers and Markets (ACM), an independent regulatory

agency, is charged with overseeing competition, enforcing consumer protection laws, and

regulating the industry, including postal operators. The Ministry of Economic Affairs develops

postal policy, represents the Netherlands in international postal organizations (such as the

Universal Postal Union), and promotes the Dutch interests in foreign postal markets.

Postal Operator Licensing or Registration System: No information found.

Other Licensed or Registered Operators: PostNL N.V. has 100 percent of the postal market

governed by universal service obligations and about 75 to 80 percent of the postal market not

governed by universal service obligations. As of 2014, there were 115 mail transport companies

other than PostNL N.V.; however, they may only operate in certain regions.

Different regions

in the Netherlands are served by between two and six national, regional or local mail transport

companies.

Selection of Designated Operator: Since 2009, PostNL N.V. is the Netherlands’ designated

postal operator and universal service provider.

Universal Service Obligation

Definition: Universal service obligations impose delivery, access, and service quality

requirements on the universal service provider and require it to provide services at an affordable

price, nationwide, under uniform conditions.

Universal Postal Union, Global or Regional Estimates: Netherlands, accessed June 14, 2016,

http://pls.upu.int/pls/ap/ssp_report.main?p_language=AN&p_choice=BROWSE.

Public mail delivery was established by a predecessor to PostNL N.V. in 1799.

Universal Postal Union, Status and Structures of Postal Entities: Netherlands, accessed Mar. 31, 2016,

http://www.upu.int/fileadmin/documentsFiles/theUpu/statusOfPostalEntities/nldEn.pdf.

In 2014, PostNL N.V. and 21 other mail transport companies handled 98 percent of the Netherland’s mail revenue,

according to the ACM. Mail collected by a regional or local mail transport company that is outside of its delivery

region is either delivered by another regional or local mail company or by PostNL N.V. About half of this kind of mail

collected from business customers by a regional or local mail transport company is delivered by PostNL N.V.

PostNL N.V., Annual Report 2012, February 25, 2013, The Hague, the Netherlands.

Page 22 GAO-16-813R International Mail

Geographic Scope: Nationwide

Product Range: The universal service provider (PostNL N.V.) is required to transport domestic

single letters and single items up to 2 kilograms and single postal parcels up to 10 kilograms.

Other universal service products include cross border mail and parcels. PostNL N.V. is not

required to deliver domestic bulk mail and parcels. However, international outbound bulk mail

and parcels are covered by the universal service obligation.

Consumer Access:

To meet universal service requirements for accessible and affordable postal

services, PostNL N.V. maintains 18,000 post office boxes and 2,000 service outlets. Reductions

in accessibility requirements on January 1, 2016, allow PostNL N.V. to reduce the numbers of

post office boxes and service outlets.

Delivery and Collection: PostNL N.V. must make deliveries of mail on Tuesday through

Saturday, except on holidays. Urgent medical items and mourning cards are delivered on

Mondays.

Pricing: In 2015, ACM set a cap for price increases based on the costs of the universal service

obligations. Each year, ACM determines additional price cap increases, based on postal

volumes and the consumer price index, which PostNL N.V. uses to set postal tariffs.

Service Quality: PostNL N.V. must deliver at least 95 percent of single piece domestic letters

and parcels within 1 day of posting.

Funding of Universal Service Obligation: Universal service obligations are financed by PostNL

N.V. revenues. PostNL N.V. finances universal service costs. ACM also assess whether PostNL

N.V. allocates costs to the universal postal service correctly.

Mechanism for Enforcing the Universal Service Obligation

ACM's responsibilities include supervising the implementation of postal legislation and the

performance of the public postal operator with regard to universal service obligations. ACM

analyzes the postal services market and can impose fines on postal operators. ACM also

imposes obligations on postal companies that have significant market power.

PostNL N.V., Annual Report 2015, February 29, 2016, The Hague, the Netherlands.

PostNL N.V., Annual Report 2015.

Consumer Postal Council, Universal Postal Service in Major Economies.

Consumer Postal Council, Universal Postal Service in Major Economies and PostNL N.V., Annual Report 2015.

Page 23 GAO-16-813R International Mail

Designated Postal Operator and the Postal Environment

Total National Mail Volume: 648.8 million domestic letter post items (2014).

Designated Operator: New Zealand Post Limited, (New Zealand Post) a state-owned enterprise

(est. 1987). New Zealand Post represents New Zealand to the Universal Postal Union (UPU).

Postal Regulator: New Zealand’s Ministry of Business, Innovation, and Employment, which is

responsible for laws and regulations relating to postal services, monitors New Zealand Post’s

compliance with its universal service obligations.

Selection of the Designated Postal Operator: New Zealand Post was selected by the

Government of New Zealand as the designated postal operator with universal service and other

obligations under a 1998 agreement with the government.

Postal Operator Licensing or Registration System: Postal operators that carry mail costing less

than NZD $0.80 per piece have to register with the Ministry of Business, Innovation, and

Employment.

Applications for registration are not required to meet any criteria relating to

universal services or service quality.

Licensed or Registered Operators: A total of 17 postal operators were registered as of August

2016.

Universal Service Obligation

Definition: New Zealand Post is required to provide delivery throughout New Zealand with

certain frequencies and a defined network of post offices and post boxes. Some of New Zealand

Universal Postal Union, Global or Regional Estimates: New Zealand, accessed June 14, 2016,

http://pls.upu.int/pls/ap/ssp_report.main?p_language=AN&p_choice=BROWSE.

Public mail delivery was established by a predecessor to New Zealand Post Limited in 1840.

New Zealand Post, History of New Zealand Post, accessed June 20, 2016, https://www.nzpost.co.nz/about-us/who-

we-are/history-of-new-zealand-post.

Approximately $0.58 in July 2016.

New Zealand Ministry of Business, Innovation and Employment, Postal Operators Obligations and Rights, last

updated February 16, 2016, accessed August 16, 2016. http://www.mbie.govt.nz/info-services/sectors-

industries/technology-communications/postal-services/postal-operators-in-new-zealand/postal-operator-obligations-

rights.

New Zealand Ministry of Business, Innovation and Employment, Postal Register, last updated August 22, 2016,

accessed August 29, 2016, http://www.mbie.govt.nz/info-services/sectors-industries/technology-

communications/postal-services/postal-register.

Page 24 GAO-16-813R International Mail

Post’s postal competitors were also granted access to New Zealand Post’s network allowing

them to provide national deliveries.

Geographic Scope: Nationwide

Product Range: Universal service obligations apply to letter post items.

Consumer Access: According to the Ministry of Business, Innovation and Employment, New

Zealand Post must maintain a minimum of 880 service points; which can include physical

outlets and self-service kiosks. A minimum of 240 of these service points must provide personal

assistance and additional postal services. The minimum number of delivery points that New

Zealand Post must deliver to is 1,910,010. No more than 3 percent of total delivery points can

be “community mail boxes or counters.”

Delivery and Collection: According to the Ministry of Business, Innovation, and Employment,

New Zealand Post is required to deliver basic postal items within New Zealand at least 3 days a

week to 99.88 percent of delivery points and deliveries between 1 and 5 days a week to the

remainder of delivery points.

However, New Zealand Post also is required to deliver 5 days

per week to PO Boxes and “Private Bags” with some exceptions.

There are no collection

requirements for New Zealand Post.

Pricing: New Zealand Post sets its own rates. According to information provided to the UPU by

New Zealand Post, while there is no formal price-setting process for the universal postal service

standard letter mail product, New Zealand Post makes a business case for price setting which is

approved by the Board of New Zealand Post, and then, given the significance of the “universal

service product,” the Regulatory and Shareholding Ministers are briefed on the decision once it

is approved by the Board.

Service Quality: New Zealand Post’s quality standards include:

• Priority letters and parcels must be delivered the day after posting;

• non-priority letters and standard parcels must be delivered within 3 working days;

• standard courier mail must be delivered the next day; and

• urgent courier mail must be delivered the same day.

Funding of Universal Service Obligation: New Zealand Post has an obligation to make a profit.

Universal Postal Union, Status and Structures of Postal Entities: New Zealand, accessed July 16, 2016,

http://www.upu.int/fileadmin/documentsFiles/theUpu/statusOfPostalEntities/nzlEn.pdf.

Ministry of Business, Innovation, and Employment, Postal Deed of Understanding.

A basic postal item is defined as a postal item that does not exceed 260mm height, 385mm length, 20mm thickness

and/or 1 kilogram weight and excludes parcel, priority, express, and courier services.

Ministry of Business, Innovation, and Employment, Postal Deed of Understanding. A New Zealand Post Private

Bag is available at selected New Zealand Post retail lobbies for customers who receive more than 50 addressed

items of mail per day.

Universal Postal Union, Country Information on the Universal Postal Service: New Zealand, information provided by

New Zealand Post Limited to the UPU on June 13, 2013, accessed June 2, 2016,

http://www.upu.int/fileadmin/documentsFiles/activities/regulatoryIssues/nzlEn.pdf.

According to New Zealand Post, courier post items are delivered overnight for local deliveries or between major

cities with delivery to rural areas in 2 to 3 business days. Tracking and signature on delivery are offered for courier

products.

Universal Postal Union, Status and Structures of Postal Entities: New Zealand.

Page 25 GAO-16-813R International Mail

Mechanism for Enforcing the Universal Service Obligation:

New Zealand Post publishes reports describing New Zealand Post’s performance in meeting its

service quality standards.

Page 26 GAO-16-813R International Mail

Designated Postal Operator and the Postal Environment

Total National Mail Volume: 52 million letter post items (2013).

Designated Postal Operator: Philippine Postal Corporation (PHLPost) is a government-owned

corporation (est. 1992).

Postal Regulator: The Department of Transportation and Communications (DOTC), a

government agency, regulates the postal delivery services industry. The Governance

Commission for Government Owned or Controlled Corporations (Commission), under the office

of the President of the Philippines, also acts as a central advisory, monitoring, and oversight

body with authority to formulate policies for government-owned or controlled corporations. The

Commission negotiates performance scorecards with each government-owned or controlled

corporation, such as PHLPost.

Selection of Designated Postal Operator: The Philippines Postal Services Office was

reorganized into a government-owned corporation in 1992 and established as the designated

postal operator.

Postal Operator Licensing or Registration System: DOTC registers any entities that engage in

the business of letter and parcel services.

Other Licensed or Registered Operators: No information found.

Universal Service Obligation

Definition: The delivery of letters, parcels, and other mail matters is a basic and strategic public

utility which the Philippines government shall provide, directly and indirectly through, and/or with

other duly authorized entities or persons. PHLPost is also charged with operating a nationwide

postal system with a network that makes available ordinary mail service to all settlements in the

country.

Geographic Scope: Nationwide

Universal Postal Union, Global or Regional Estimates: Philippines, accessed June 15, 2016,

http://pls.upu.int/pls/ap/ssp_report.main?p_language=AN&p_choice=BROWSE. Data from 2014 was not available.

Public mail service was initiated in the Philippines by a predecessor to PHLPost in 1902.

Philippine Postal Corporation (PHLPost), Mandate, Mission, and Vision, accessed July 14, 2016,

https://www.phlpost.gov.ph/page.php?id=8.

Page 27 GAO-16-813R International Mail

Product Range: The universal postal service includes letters and parcels.

Consumer Access: PHLPost’s goals include increasing the number of franchised postal

stations, increasing express delivery for Manila and areas outside of Manila, and increasing the

number of postal outlets with points of sale systems and internet connectivity.

Delivery and Collection: We did not find any delivery or collection requirements for PHLPost.

However, service quality goals are set between PHLPost and the Commission (see Service

Quality Requirements below).

Pricing: Prices must be sufficient to finance the overall cost of providing the varied range of

postal delivery and messenger services as well as the expansion and continuous upgrading of

service standards.

Service Quality: PHLPost sets the following service quality goals which are evaluated by the

Commission:

• 95 percent of international express post items for Manila delivered 24 hours after

clearing customs;

• 90 percent of domestic express post items for Manila delivered 36 hours after posting;

• 95 percent of international express post items for outside of Manila delivered within 3

days after clearing customs;

• 95 percent of domestic express post items for outside of Manila delivered within 3 days;

•

85 percent of international parcels delivered within 7 days after clearing customs;

• 85 percent of international letter post delivered within 7 days after clearing customs;

• 85 percent of domestic parcel post will be delivered within 7 days; and

•

85 percent of domestic letter post will be delivered within 7 days.

Funding of Universal Service Obligation: Among other things, PHLPost revenues, grants,

proceeds of the sale of assets, loans, interest, and capital or surplus.

Mechanism for Enforcing the Universal Service Obligation

The Commission negotiates performance scorecards with the PHLPost to improve operations

and customer service and maintain financial viability. Annual performance targets are based on

historical performance, benchmarking with the private sector, and feedback from the public on

the scorecards. PHLPost is required to submit quarterly performance reports on progress

toward meeting annual performance targets to the Commission.

Universal Postal Union, Status and Structures of Postal Entities: Philippines, accessed April 11, 2016,

http://www.upu.int/fileadmin/documentsFiles/theUpu/statusOfPostalEntities/phlEn.pdf.

PHLPost, Performance Agreement between Governance Commission for Government Owned or Controlled

Corporations and the Philippine Postal Corporation, (Makati, Philippines, June 8, 2015).

Universal Postal Union, Status and Structures of Postal Entities: Philippines.

These goals are for calendar year 2015. PHLPost, Performance Agreement between Governance Commission for

Government Owned or Controlled Corporations and the Philippine Postal Corporation.

PHLPost, Performance Agreement between Governance Commission for Government Owned or Controlled

Corporations and the Philippine Postal Corporation.

Page 28 GAO-16-813R International Mail

Designated Postal Operator and the Postal Environment

Total National Mail Volume: No information available.

Designated Postal Operator: Singapore Post, Ltd. (Singapore Post) is a private company listed

on the Singapore Exchange (est. 1992).

Postal Regulator: The Info-communications Development Authority of Singapore (IDA), a

statutory board of the Singapore government, sets postal performance standards. Singapore

Post measures and submits to IDA, quarterly, performance results it achieved for various

indicators. IDA occasionally reviews and modifies standards to meet growing demand for higher

service levels.

Selection of the Designated Postal Operator: The Telecommunications Authority of Singapore

(now IDA) designated Singapore Post as the country’s designated postal operator in 1992.

Postal Operator Licensing or Registration System: IDA evaluates postal-operator license

applications based on: vision of the applicant and how it will contribute towards to the public and

the economy of Singapore; organizational structure, financial capability and strength of the

applicant; business and competition strategies of the applicant for the provision of services;

soundness of the applicant’s business plans and capability to implement the plans; and ability in

ensuring security and integrity of postal articles. The conveyance of direct mail is exempt from

licensing.

Other Licensed or Registered Operators: IDA licenses postal service operators. IDA designated

Singapore Post as the only Public Postal Licensee in Singapore.

In addition to Singapore

Post, as of August 2016, there are three licensed postal service operators in Singapore:

Asendia Singapore, DHL eCommerce, and World Marketing Group.

Public mail service in Singapore was initiated by a predecessor of Singapore Post in 1819.

Info-communications Development Authority of Singapore, Policies and Regulations: Postal Services: Quality of

Service Reports, accessed May 17, 2016, https://www.ida.gov.sg/Policies-and-Regulations/Industry-and-

Licensees/Standards-and-Quality-of-Service/Quality-of-Service/Postal-Services.

Info-communications Development Authority of Singapore, Guidelines on Submission of Applications for Postal

Services Operator License, created January 28, 2013, accessed May 17, 2016,

https://www.ida.gov.sg/~/media/Files/PCDG/Licensees/Licensing/Framework%20and%20Guidelines/GuidelinesLicen

singSch/PSOGuide.pdf.

Info-communications Development Authority of Singapore, Policies and Regulations: Industry and Licenses: Postal,

last updated November 22, 2013, accessed July 2016, https://www.ida.gov.sg/Policies-and-Regulations/Industry-and-

Licensees/Postal.

Other postal service operators that do not have the public postal license can access specified locked letterboxes

through the Singapore Post Ltd. delivery network at regulated prices. These postal service operators also can have

access to unlocked letterboxes.

Page 29 GAO-16-813R International Mail

Universal Service Obligation

Definition: Singapore Post is required to perform a set of universal service obligations

determined by IDA, including providing services for the conveyance and delivery of letters to

any person in Singapore who requests such services; and providing and maintaining posting

boxes and post offices throughout Singapore.

Geographic Scope: Nationwide

Product Range: Universal service obligations cover the conveyance of letters weighing up to

500 grams.

Consumer Access: Singapore Post, as the public postal licensee, also is required to establish

island-wide post boxes for collection of letters, post offices, and sorting facilities, as determined

by IDA.

100

Delivery and Collection: Universal service includes providing services for the conveyance and

delivery of letters to any person in Singapore who requests such services and providing and

maintaining posting boxes and post offices throughout Singapore. For packages, publications

and others (examples: promotional materials, merchandise, newspapers, periodicals,

catalogues, books etc.) the delivery standard is 3 to 5 working days (Mondays through Fridays,

excluding public holidays). Mail collection times are specified for 7 p.m. Mondays through

Thursdays within the central business district (CBD) and 5 p.m. outside of the CBD and at 8

p.m. on Fridays within the CBD and 6 p.m. outside of the CBD.

101

Pricing: Singapore Post is required to submit service plans and associated product prices to IDA

for approval.

102

Service Quality: IDA sets Singapore Post’s service quality standards, such as:

• 99 percent of mail delivered by the next working day to postal codes within Singapore’s

CBD, and 98 percent delivered by the next working day to postal codes outside of

Singapore’s CBD;

103

• 100 percent of letters and registered letters delivered by the second working day;

• 100 percent of outgoing mail processed and connected to departing flights by the next

working day (subject to availability of flights);

• 99 percent of mail received before 3 p.m. at the Singapore Post Centre delivered by

next working day to postal codes within the CBD;

Info-communications Development Authority of Singapore, Policies and Regulations: Industry and Licenses: Postal.

Letters excludes books, catalogs, newspapers, and periodicals. The conveyance of direct mail will also be

exempted from licensing.

100

Info-communications Development Authority of Singapore, Guidelines on Submission of Applications for Postal

Services Operator License.

101

Info-communications Development Authority of Singapore, Policies and Regulations: Postal Services: Quality of

Service Reports.

102

Universal Postal Union, Status and Structures of Postal Entities: Singapore, updated 2013, accessed March 2016,

http://www.upu.int/fileadmin/documentsFiles/theUpu/statusOfPostalEntities/sgpEn.pdf.

103

Working days refer to Mondays through Fridays, excluding public holidays.

Page 30 GAO-16-813R International Mail

• 98 percent of mail received before 3 p.m. at the Singapore Post Centre delivered by

next working day to postal codes outside of the CBD; and

• For packages and publications, the delivery standard is 3 to 5 working days.

104

Funding of Universal Service Obligation: We could find no evidence of significant government

support for Singapore Post Ltd.

Mechanism for Enforcing the Universal Service Obligation

Singapore Post, as the public postal licensee, is required to perform a set of universal service

obligations determined by IDA. Singapore Post measures and submits to IDA quarterly

performance results. IDA reviews this information and reports quarterly and annually as to

whether Singapore Post complies with IDA’s requirements. Non-compliance with these

standards can result in a fine of $50,000 in Singapore dollars per month per violation.

105

106

104

Info-communications Development Authority of Singapore, Policies and Regulations: Postal Services: Quality of

Service Standards for Postal Services, last updated June 16, 2016, accessed August 11, 2016,

https://www.ida.gov.sg/~/media/Files/PCDG/Licensees/StandardsQoS/QualityofService/QoSStandards_PostalServic

es.pdf.

105

Approximately $37,000 in July 2016.

106

Info-communications Development Authority of Singapore, Policies and Regulations: Postal Services: Quality of

Service Standards for Postal Services.

Page 31 GAO-16-813R International Mail

Designated Postal Operator and the Postal Environment

Total National Mail Volume: 16.4 billion letter post items (2014).

107

Designated Postal Operator: Royal Mail Group, Ltd. (Royal Mail), a privatized, joint stock

company (est. 2013).

108

Postal Regulator: The Office of Communications (Ofcom) is the United Kingdom (UK)

government’s independent communications regulator, which includes postal service.

Selection of the Designated Postal Operator: Ofcom designated Royal Mail as the UK’s

designated operator required to provide universal service in March 2012.

109

Postal Operator Licensing or Registration System: No licensing is required for provision of

universal postal services.

110

Licensed or Registered Postal Operators: While licenses are not required for postal operators in

the UK, other postal operators can either collect, sort, and deliver items on their own or collect

and sort the items and deliver them to Royal Mail for final delivery.

111

Universal Service Obligation

Definition: Ofcom defines universal service as the delivery and collection of mail everywhere in

the UK at affordable and uniform prices, every working day (and on Saturday for letters).

112

Geographic Scope: Nationwide

107

Universal Postal Union, Global or Regional Estimates: Great Britain, accessed August 16, 2016,

http://pls.upu.int/pls/ap/ssp_report.main?p_language=AN&p_choice=BROWSE.

108

Public mail service was established by a predecessor to Royal Mail Group, Ltd. in 1635.

109

According to a 2014 National Audit Office report, Royal Mail was selected as the designated postal operator for the

United Kingdom because it is the only postal operator in the country with an extensive nationwide postal network.

National Audit Office, The Privatization of Royal Mail (London, Apr. 1, 2014).

110

Office of Communications, Securing the Universal Postal Service: Decision on the new regulatory framework,

(London, Mar. 27, 2012).

111

Royal Mail delivered about 99 percent of the UK’s letter mail and about 52 percent of the UK’s parcels in 2014-

2015. Office of Communications, Annual Monitoring Update on the Postal Market, Financial Year 2014-5 (London,

United Kingdom: Nov. 27, 2015).

112

Office of Communications, Technical and minor amendments in postal regulation: notifications of technical and

other minor amendments to the Universal Postal Service Order and related conditions (London, Dec. 10, 2013).

Page 32 GAO-16-813R International Mail

Product Range: Letters, literature for the blind and packets up to 2 kilograms and parcels up to

20 kilograms.

113

Consumer Access: Royal Mail must ensure that 98 percent of users are within 0.5 miles of a

letter box, and that facilities capable of receiving the largest relevant postal items required for

universal service are located within 5 kilometers of not less than 95 percent of postal users.

114

Delivery and Collection: With some exceptions, delivery and collection of letters is required

every Monday through Saturday and the delivery and collection of other mail items (such as

packets or parcels) is required Monday through Friday.

115

Pricing: While Royal Mail can set prices, Ofcom was obligated to set postal product price

controls. Ofcom’s price caps limits certain letter-mail products to a total price from 2012—2018

for these products of not more than 53 percent compared to 2011—12 prices.

116

Service Quality: Ofcom sets product targets (such as on-time delivery targets for different

regulated mail products) and service-related performance targets (i.e., delivering 99.5 percent of

its mail items correctly).

117

Funding of Universal Service Obligation: Royal Mail and its retail arm in charge of post offices

receive financial aid from the UK government through support payments for rural post offices,

subsidies for the transformation of the post office network, and relief of legacy pension costs.

After October 2016, if Ofcom concludes that complying with universal service obligations

imposes a financial burden on Royal Mail, Ofcom can establish a universal service support fund,

if approved by the UK government.

Mechanism for Enforcing the Universal Service Obligation

Ofcom’s principal duty is to impose access or other regulatory conditions in a way that will

secure the provision of a universal postal service that is financially sustainable and efficient.

Universal service providers and other postal operators provide data to Ofcom, which publishes

some of this data annually.

118

(100524)

113

Universal Postal Union, Country Information on Universal Postal Service: Great Britain, information provided by

Royal Mail to the UPU on June 7, 2013, accessed June 2, 2016,

http://www.upu.int/fileadmin/documentsFiles/activities/regulatoryIssues/gbrEn.pdf.

114

Office of Communications, DUSP1: Services, Access Points, Performance Targets, Notification and Publication

and Contingency Planning (London, United Kingdom: Apr. 1, 2014).

115

Office of Communications, DUSP1.

116

Office of Communications, Annual Monitoring Update on the Postal Market, Financial Year 2014-15 (London,

United Kingdom: Nov. 27, 2015).

117

Office of Communications, DUSP1.

118

Office of Communications, Annual Monitoring Update on the Postal Market, Financial Year 2014-15.

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