CASE STUDY: THE UNIVERSAL SERVICE IN GERMANY
Currently, Germany is one of only three EU member states that deliver letters six days a week – the others are France and Malta – as well as the UK, of course. For Germany, this is not set to change.
This has been deliberate to help Germany protect letter volumes. It has seen less reduction in letter volumes since its own peak than some other countries who changed its USO earlier. Since the Covid-19 pandemic, German letter volumes have declined faster.
The German Government has put forward legislation, which would see letters move to a slower service. So, instead of 80% of letters needing to arrive on the next working day and 95% on the second working day, 95% of letters will need to be delivered within three working days in the future.
It is said that not only will this enable Deutsche Post (Royal Mail’s equivalent in Germany) to reduce costs by consolidating items into fewer deliveries per address per week, it will also bring an end to the inland night flights, which are used to transport letters.
The German Federal Network Agency (the German regulator, Ofcom’s equivalent) have said they believe more time should be given to deliver mail, believing the speed of letter delivery plays a minor role in a more digital age. However, it’s important letters arrive reliably and affordably.
Klaus Müller, Head of the Agency said: ‘Deutsche Post is still obliged to deliver six days a week. But our society and our communication behaviour have changed.’
The legislation being considered will adjust the commitments Deutsche Post has to meet in order to sustain its Universal Service Obligation.
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.
Catch up on others in this series:
DENMARK
