RMCtv : Universal Service Around the World: Denmark

[POSTMAN]

In a new series of articles, we’re looking at how other countries have adapted their Universal Service over time. It comes after Ofcom presented options into the possible evolution of Royal Mail’s USO. In this, the first in the series, we look at Denmark.

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CASE STUDY: THE UNIVERSAL SERVICE IN DENMARK

Post Nord (Royal Mail’s equivalent in Denmark) is no longer required to provide the Universal Postal Service, due to a recent change in the Danish postal law. Now, the Universal Service must be “handled by the market”, with several operators delivering letters and parcels at a universal price across the country.

The Danish Government has made changes to the Universal Service earlier, and gone further, than any other comparator country.

Since 2012, all citizens and businesses in Denmark have been obliged to receive and read communications from public bodies using a digital post system1.

A European Parliament study states “volumes for the basic letter product in Denmark declined by 93 per cent from 2010 to 2017”. As a result, letters went from six to five-day-a-week in 2016 and then down to one-day-a-week in 2018, prior to the decision to remove the requirement to have a Universal Service Provider, which came into effect from 1 January 20242.

In response to the most recent changes, Annemarie Gardshol, Group CEO and president of PostNord, said: ‘The new law will result in our mail business as we know it today looking different in the future. PostNord’s presence in the Danish parcel market is not affected by the changes.

‘We still see great potential in the parcel market, as a result of more and more consumers choosing to make purchases online. We continue to invest and develop the business in this area for the benefit of our customers throughout the Nordic region.’

At Royal Mail, we remain committed to the Universal Service Obligation (USO) and the one-price-goes anywhere service to every address across the country. Denmark is an extreme case and not one we want to follow – letters remain important to us. But it is important to recognise that helping to secure a strong future for Royal Mail means securing a viable future for the USO, adapted to what consumers want today.

We welcome that Ofcom’s review, published on 24th January. Ofcom’s report demonstrates that reform is urgent. We are doing everything in our power to transform but it is not sustainable to maintain a network built for 20 billion letters when we are now only delivering seven billion.

For more, make sure you check out this RMtv Special, ( viewtopic.php?f=1&t=112510) in which we answer colleagues’ questions on the business’ position around Ofcom’s review.
1 Taken from Ofcom’s call for inputs document: The future of the universal postal service
2 The Danish Government are still required to provide certain services – for instance, articles for the blind.

[derekm]

What has other countries around the world got to do with us ?? If that’s how they run there business then that’s up to them. Our lot want to run ours down to get bigger returns for shareholders.

[funkflex55]

Exactly. We should not use other countries postal services to justify f***ing up the service in this country.

[Flashman_]

all citizens and businesses in Denmark have been obliged to receive and read communications from public bodies

So by law they have to read what their government tells them?, that sounds great for democracy. sounds like the ministry of truth, Don`t think that will wash here.
I would hope not anyway.

[chickenwittle]

I think they are actually trolling us now .

[qwerty2]

Idiots completely different countries from each other

[enskied]

The Governments of Denmark and Sweden own the postal service together. It is not held hostage to shareholders. Post is expensive, those with more money can pay extra to receive mail faster.
It isn't a universal service.

[achak]

What they’ve conveniently left out is that Denmarks population is 10x smaller than that of the UK. Can barely compare the two.

[Mr Rush]

I think this is the most overt propaganda I've seen from Royal MTV.

[cockneyrebel]

Denmark Population just under 6 million
UK ?? !! Just under 68 million !!!!!!!!!
YOU REALLY SHOULD WORRY about Royal Mail Management and the ability of them
You simply cannot compare with such a difference in population/cultures/ethnic backgrounds etc

[Phantom]

3.5 million addresses in Denmark compared to 30 million in the UK.

The lobbying will not stop till half of the workforce has been made redundant to create profit for shareholders.