UNIVERSAL SERVICE OBLIGATION THE UPU’S VIEWPOINT According to Siva Somasundram, director of policy, regulation and markets at the UPU, USOs are crucial because they ensure the entire population within a territory has continuous access to basic postal services at affordable prices and with a specified standard of quality. “The mission of the UPU acknowledges universal postal services as one of the cornerstones of the postal industry,” he adds. However, given declining letter volumes, he does believe that amending USOs could help posts adapt to changing realities. “Modernizing the scope and delivery of postal services would allow posts to better align with current and future demands, ensuring their financial viability and continued provision of services. Beyond addressing declining letter volumes, amending the USO is also necessary to respond to new trends such as technological advancement and the emergence of e-commerce, ensuring postal services remain relevant and effective in meeting the needs of the public and businesses alike,” he explains. To establish a comprehensive postal reform strategy, the UPU launched the Integrated Postal Reform and Development Plan (IPDP) in 2005, which is complemented by the Postal Reform Guide (PRG). The IPDP and PRG collectively provide UPU member countries with a strategic framework for reforming the postal sector, focused on ensuring that states’ obligation to provide USOs is clearly defined and fulfilled. “Given the evolving economic, market and regulatory changes in the postal and delivery market, as well as shifting customer, citizen and business expectations, the need to revise and update the current IPDP and PRG has been recognized,” explains Somasundram. “Consequently, the UPU is undertaking a comprehensive review of the existing IPDP and PRG. This review is aimed at bolstering the support for the postal sector reform agenda, ensuring it adequately addresses current challenges and leverages opportunities, particularly those related to the USO. “Nevertheless, the provision of universal postal service should be recognized as a fundamental human right, emphasizing its essential role in facilitating global communication and ensuring that every individual has access to postal services,” he concludes. Australia Post ABOVE: Australia Post delivered around half a billion parcels in 2022/2023 Using PUDO networks Tuohy also believes that Royal Mail could make better use of the roughly 60,000 PUDO and locker points across the UK for letters and parcels to help it meet its delivery targets. “This makes both commercial and environmental sense,” he adds. Marek Rózycki, managing partner at Last Mile Experts, agrees. “If a very convenient and proximate out-of-home delivery alternative for letters were offered, this could dramatically improve economics,” he says. “Imagine if your letters are left in a locker or PUDO point ‘slipper distance’ from your home – and only delivered to your doorstep if you are unable to physically collect due to age or illness, for example.” Community consultation in Australia THE PROVISION OF UNIVERSAL POSTAL SERVICE SHOULD BE RECOGNIZED AS A FUNDAMENTAL HUMAN RIGHT” Siva Somasundram, UPU In December last year, the Australian government announced proposed changes to postal services, with daily letter deliveries set to be scrapped to help reduce Australia Post’s losses. The post recorded an A$200m (US$131m) pre-tax loss for the 2022/2023 financial year, its first annual loss since 2015 and only its second in the past +30 years. In Australia, letter volumes have reduced by two-thirds since their peak in 2008. The average Australian household now receives just over two addressed letters per week. The Australian government’s proposals state that mail deliveries can be made every second day to 98% of locations. Parcel deliveries will continue to be made daily. The regulations are currently at draft stage, with community consultation ongoing. “The reforms will establish a platform for Australia Post to build a more sustainable business, while still providing secure employment for tens of thousands of posties and other team members, as we continue to deliver for our customers and the community every day,” 42 www.ParcelandPostalTechnologyInternational.com March 2024