Could and Should Electronic Communication Help Meet Universal Service Obligations?

Abstract

A long-standing threat to the ability of postal operators to cover the cost of meeting their universal service obligations is the displacement of substantial volumes of mail, particularly letter mail, by the use of electronic communication. This invites us to consider whether a similar displacement could and should take place on the other side of the equation—that is, should electronic communication be used to meet universal service obligations, at least in part. Universal service obligations (USO) for both technologies share common underlying objectives. Funding options for the postal USO remain problematic (diversification) or insufficiently considered (recipient fees). Institutional coordination issues would need to be addressed, depending on prior regulatory structure. Mail and electronic communication remain imperfect substitutes, so both are likely to play a role in meeting common objectives. Perhaps the postal operator could manage broadband universal service programs.