Report from the Commission to the Council and the European Parliament - Prospective study on the impact on universal service of the full accomplishment of the postal internal market in 2009
Date: 2006-10-18
Institutions: European Commission
Subjects: impact study, liberalisation of the market, postal service, report, universal service

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 18.10.2006 
COM(2006) 596 final 

REPORT FROM THE COMMISSION 
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 

Prospective study on the impact on universal service of the full accomplishment of the 
postal internal market in 2009 

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REPORT FROM THE COMMISSION 
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 

Prospective study on the impact on universal service of the full accomplishment of the 
postal internal market in 2009 

(Text with EEA relevance) 

1. 

BACKGROUND AND PURPOSE OF THIS REPORT 

Ever since its launch more than 15 years ago, the main objective of EU postal policy has been 
to  secure  a  sustainable  high  quality  universal  service  for  all  customers  and  EU  citizens 
throughout  the  Community.  The  EU  postal  reform  agenda  decided  by  the  EU  legislator  has 
consisted  of  a  prudent  step-by-step  phasing  in  of  competition  into  postal  markets  so  as  to 
improve on the efficiency, quality and choice of postal services – with the eventual target of 
full  market  opening.  Over  the  last  15  years,  the  remaining  monopolies  have  been  gradually 
reduced,  and  postal  actors  have  been  given  time  to  adapt  their  organisations  to  the  new 
situation. The Postal Directive notes 2006 as the year for the Commission to confirm, if the 
postal  reform  agenda  can  be  pursued  and  the  last  step  for  full  market  opening  in  2009,  as 
envisaged by the Directive, be taken. At this critical point, the Directive explicitly requires1 
the Commission to present a “prospective study” to assess whether this could be done while 
maintaining the universal service. 

The  analysis  presented  in  this  Study  focuses  on  a  prospective  outlook  and  assesses  what 
would happen to universal service in a scenario of full market opening in 2009. This question 
cannot be answered without addressing the closely related issue of how universal service is to 
be  financed  in  the  absence  of  any  monopoly  (or  "reserved  area").  In  this  Study,  the 
Commission  has  deliberately  chosen  a  very  cautious  approach,  focusing  on  the  long-term 
sustainability of universal service provision for the benefits of EU citizens and businesses. 

the  Commission’s  Prospective  Study,  builds  upon 

the  findings  of 
This  Report, 
PriceWaterhouseCoopers’  (PWC)  sector  study  on  the  impact  of  full  market  opening  on 
universal  service2.  In  addition,  it  is  based  on  a  number  of  other  elements,  in  particular  the 
findings  from  previous  sector  studies3,  experts’  reports,  extensive  consultations  with 
stakeholders,  research,  as  well  as  experience  with  competition  in  postal  markets  and  other 
sectors. 

This  Report  reiterates  the  objectives  of  EU  postal  reform  and  presents  the  state  of  play  of 
postal  universal  service  in  the  EU  including  future  market  trends.  It  assesses  the  potential 
impacts  and  opportunities  that  a  postal  internal  market  open  to  competition  will  have  on 
universal  service  and  related  Community  objectives  in  this  area  (employment  and  social 

1 
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3 

Article 7(3) of Directive 97/67/EC as amended by Directive 2002/39/EC. 
"The  impact  on  universal  service  of  the  full  market  accomplishment  of  the  postal  internal  market  in 
2009", PriceWaterhouseCoopers, 2006 (hereafter PwC 2006). 
20 studies have been commissioned by the Commission since the start of EU postal reform, see: 
http://ec.europa.eu/internal_market/post/studies_en.htm 

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aspects).  Finally,  the  Report  addresses  possible  accompanying  measures  to  mitigate  any 
possible risks, including alternative funding mechanisms for universal service.  

2. 

THE OBJECTIVES OF EU POSTAL REFORM 

EU postal reform has been designed to improve on the static situation of varying quality and 
limited choice in postal services provided by incumbent operators holding postal monopolies 
in each Member State. 

Acting in response to the imminent changes in the traditional postal market and the need to 
develop  the  European  internal  postal  market,  the  EU  legislator  chose  to  introduce  more 
competition in the market to give the necessary incentives to address the need for efficiency 
and better quality4. A regulatory framework was put in place to monitor market developments 
and control the provision of universal service. 

The  EU  definition  of  universal  postal  service  is  based  on  two  main  elements:  a  range  of 
services, and the conditions attached to their delivery. Universal service is defined in Article 3 
of  the  Postal  Directive5.  It  can  be  summarized  as  access  to  a  range  of  services  (letters, 
packages,  insured  and  registered  items,  other  postal  items)  under  conditions  of  affordability 
(prices), accessibility and quality requirements (collection and delivery 5 days a week, limited 
transit time) and compliance with "essential requirements" (e.g. privacy of correspondence).  

In line with the principle of subsidiarity, the broad definition of universal service in the Postal 
Directive  is  applied  in  different  ways  across  the  EU,  thus  reflecting  national  and  societal 
needs.  Derogations  are  permitted  under  exceptional  circumstances  (e.g.,  reducing  delivery 
frequency to very remote areas).  

The funding of universal service still mainly relies today in a majority of Member States on a 
reserved  area  or  remaining  monopoly  (complemented  by  economies  of  scale  and  scope), 
enjoyed  by  incumbent  public  operators.  If  the  reserved  area  provides  a  comfortable 
mechanism to fund the provision of universal service, it remains the most important barrier to 
achieving  the  internal  postal  market.  As  indicated  by  the  1992  Green  Paper  on  the 
development  of  the  single  market  for  postal  services,  proper  incentives  are  needed  for 
operators to adapt services, to innovate, and to provide an efficient universal service to all EU 
citizens. The logic of controlled market opening was therefore confirmed by the Commission 
in 1992, the Council in 1994, the European Parliament and Council in 1997 and 2002, and by 
successive Commission Reports on the application of the Postal Directive, on condition that 
universal service can be safeguarded6. 

3. 

UNIVERSAL POSTAL SERVICE PROVISION: THE STATE OF PLAY 

Recent analysis indicates that there has been a satisfactory level of development of universal 
postal services in Europe: universal service is of high quality, prices are affordable, access to 

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6 

Green Paper on the development of the single market for postal services - COM(91) 476. 
Directive  97/67/EC  of  the  European  Parliament  and  of  the  Council  on  common  rules  for  the 
development  of  the  internal  market  of  Community  postal  services  and  the  improvement  of  quality  of 
service, as amended by Directive 2002/39/EC 
COM(91) 476; OJ C 48, 16.2.1994; Directive 97/67/EC and Directive 2002/39/EC; COM(2002) 632; 
COM(2005) 102; COM(2006) 595. 

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services is easy, and many operators make substantial profits7. The positive impact of postal 
reform  so  far  was  also  noted  in  the  Commission  Reports  on  the  application  of  the  Postal 
Directive8 as well as in the recent Resolution of the European Parliament9. 

The  current  picture  also  shows  a  radically  different  postal  service  as  compared  with  the 
traditional one: postal operators are now complex modern industry operators competing with 
other  communication  media  in  a  dynamic  environment.  More  than  87.5%  of  the  mail  is 
originating  from  business.  In  addition,  recent  technological  developments  are  impacting  the 
way  postal  service  is  provided  and  are  also  challenging  its  core  activity.  In  this  context 
economic  actors,  notably  small  and  medium  size  enterprises,  playing  an  active  role  in 
different stages of the postal value chain represent an important source of opportunities for the 
future growth of the postal sector10. 

Some  Member  States  have  already  introduced  full  or  significant  postal  competition  in 
advance of the EU agenda, or have firm plans to do so, to the extent that around 60% of EU 
letter  post  volumes  are  expected  to  be  completely  open  to  competition  by  2008.  In  these 
countries,  despite  the  absence  of  a  reserved  area,  universal  service  requirements  have  been 
retained  and  met.  Examples  in  Sweden,  Finland,  and  the  United  Kingdom  show  that  the 
efficiency and reliability of postal services have been improved and meet the needs of citizens 
and businesses11. Perception from consumers of access to postal services is very different per 
national market12.  

The  analysis  of  the  detailed  provision  of  universal  service  requirements  (affordable  prices, 
specified  quality,  ubiquity  of  network  of  post  office)  as  well  as  changes  in  the  working 
environment  changes  demonstrates  that  operators  and  customers  are  feeling  the  impact  of 
changes  in  the  sector,  irrespective  of  market  opening.  Key  drivers  such  as  demand, 
technological developments, organisational changes and regulatory regimes are impacting the 
way  universal  service  is  provided13.  A  new  dynamic  has  evolved,  with  increasing 
professionalisation  in  the  provision  of  universal  service,  improved  services  and  more  value 
delivered to customers.  

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"Main developments in the postal sector (2004-2006)", Wik -Consult 2006 (hereafter Wik 2006). 
COM(2002) 632, COM(2005) 102, COM(2006) 595. 
European  Parliament  resolution  on  the  application  of  the  Postal  Directive  (Directive  97/67/EC,  as 
amended by Directive 2002/39/EC) (2005/2086(INI)), February 2006. 
“The  European  Mail  Manifesto:  Growth,  Partnership  and  Innovation  in  a  changing  industry”  Postal 
Users' Group, 2006. 
"A  broad  economic  analysis  of  the  effects  of  liberalising  the  postal  market",  Swedish  Institute  for 
growth policy studies 2005. 
Source:  Eurobarometer  survey  2002  (only  EU-15),  2003  (only  NMS),  2004,  2006  and  Focus  Groups 
2006. 
"Technology  and  innovation  in  the  postal  sector",  A  D  Little  2004;  "European  landscape  in  2015", 
Boston Consulting Group, 2006 (hereafter BCG 2006). 

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4. 

POTENTIAL IMPACTS ON UNIVERSAL SERVICE IN A FULLY OPEN MARKET SCENARIO 

4.1. 

Impact on the provision of universal service 

Access to postal services 

The change in the traditional way of accessing postal universal services is already apparent, 
reflecting  notably  how  consumers  now  access  postal  services,  and  no  further  significant 
change  is  expected  following  full  market  opening.  On  the  positive  side,  better  aligned  and 
higher  quality  services  are  expected;  on  the  negative  side,  access  in  remote  areas  may  be 
affected,  which  may  imply  the  need  for  assisting  measures  if  insufficient  alternatives  are 
offered  by  universal  service  providers  and  other  market  actors.  In  a  multiple  operators 
environment,  in  particular  during  the  transition  period,  regulatory  supervision  will  be 
necessary  to  guarantee  the  access  to  services  for  consumers  and  small  and  medium  size 
enterprises. 

Quality of service 

Ubiquity of delivery and high quality of services are the most important marketing advantages 
of  incumbent  universal  service  providers.  It  would  be  not  logical  for  them,  under  full 
competition, to reduce their standards. For less attractive market segments, in the absence of 
competitive pressure, continued regulatory control and monitoring may be needed to ensure 
quality14.  

Price and affordability 

In  general,  the  expected  impact  of  full  market  opening  on  universal  service  is  a  better 
alignment  of  services  with  actual  needs  and  the  willingness  of  consumers  and  small 
companies  to  pay  for  these  services.  For  smaller  customers  and,  even  more  so,  those 
consumers who only devote a very small part of their overall budget to postal services, pricing 
stability  remains  important  and  regulatory  safeguards  in  the  form  of  price  cap  mechanisms 
can be introduced to control developments. 

4.2. 

Impact on the financing of universal service 

Market forces will increasingly contribute to a more efficient universal service provision and 
limit the cost of the residual part which would be of no direct economic interest. However, the 
future of universal service cannot be put solely in the hands of market forces. A certain degree 
of  commercial  freedom  will  have  to  be  granted  to  universal  service  providers  (notably 
releasing the price uniformity constraint for bulk mail), and, if justified and proportionate, ad-
hoc  funding  may  be  necessary.  In  addition  and  notably  in  markets  with  low  volumes  per 
capita, regulatory measures can also be implemented. 

4.3. 

Impact on employment aspects 

Restructuring of incumbent operators is an on going trend, and market opening is only one of 
its drivers. Overall, there is more potential to be gained in supporting a more dynamic open 

14 

"The evolution of the regulatory model for European postal services", Wik-Consult 2005 (hereafter Wik 
2005). 

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market, which will benefit the wider industry, than in maintaining the current status quo15. It 
is expected that the effects induced by complete market-opening in expanding the overall size 
of  the  postal  markets  and  in  facilitating  integration  and  competitiveness  with  alternative 
methods  of  communication  and  transport  will  further  contribute  to  maintain  sustainable 
employment within universal service providers as well as facilitating the creation of new jobs 
in other operators and new entrants.  

4.4. 

Impact on territorial and social cohesion 

To  the  extent  that  universal  service  providers  fulfil  a  social  role,  they  may  have  to  request 
adequate  financial  compensation.  Appropriate  answers  should  and  can  be  found  at  national 
level,  where  such  claims  can  best  be  assessed  and  the  appropriate  answer  in  terms  of 
financing can be given (see examples in France and Norway)16. 

4.5. 

The relevance of differences in Member States 

An important point to consider in this assessment is the different impact on market opening in 
each  Member  State,  taking  into  account  the  situation  of  its  national  postal  market  and  the 
different stages of preparedness of incumbent universal service providers. It is claimed that, 
depending on these differences, market opening may in certain Member States be detrimental 
to  the  provision  of  universal  service.  The  study  undertaken  by  PWC  has  reviewed  all 
differences across the EU in the event of a fully open market scenario and has concluded that 
in no Member State would market opening in 2009 jeopardize universal service, nor should it, 
as a consequence, be postponed. This confirms the Commission's own assessment and other 
evaluations, notably the Ecorys study which gives additional details on the perspectives of the 
development  of  competition  for  each  market;  two  successive  studies  on  the  development  of 
the  European  postal  market  by  Wik-Consult;  and  the  study  on  postal  economics  by  Nera 
(although not reporting formally on a country format, these three studies converge in the same 
direction)17. 

On  a  case  by  case  basis,  certain  measures  may  be  needed  at  Member  State  level  to  address 
any  insufficient  degree  of  preparedness  of  the  incumbent  operator.  This  should  enable  the 
incumbent to restructure without downgrading universal service. Confirming the final date for 
full  market  opening  will  bring  the  incentives  to  finalise  preparation  in  time.  Any  specific 
problems  that  some  universal  service  providers  might  face  may  be  mitigated  by  additional 
safeguards - without the necessity to postpone full market opening beyond 2009. 

4.6. 

Risks in delaying reform 

Without the prospects of actual market opening, long term provision of universal service may 
be threatened18. Further investment is needed to meet new market challenges and to continue 
providing  universal  service  as  national  governments  confronted  with  budgetary  restrictions 
are becoming less ready to invest in the postal infrastructure19. In assessing the opportunity to 

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BCG 2006 p. 19. 
PwC 2006 p. 169.  
"Economics of postal services", Nera 2004; "Development of competition in the postal sector" Ecorys 
2005 (hereafter Ecorys 2005); "Main developments in the European postal sector", Wik-Consult 2004 
(hereafter Wik 2004); Wik 2006, PwC 2006.  
"Giving customers choice: a fully open postal services market", Postcomm 2005. 
Wik 2006 p. 159. 

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invest in the sector, actors will need regulatory certainty and confirmation of market opening 
for unlocking the potential of the postal market. 

In  addition,  continued  monopoly  protection  would  not  give  the  necessary  incentives  to 
incumbents to deliver quality and efficiency to the benefits of all users. Prospects of (endless) 
price  increase  will  prompt  users  to  switch  to  alternative  communication  media.  This  would 
also  deter  current  investments  plans,  would  limit  the  search  for  innovation  and  value  added 
services. Moreover, jobs in the postal sector would be at risk in the long term, as would those 
in adjacent sectors which depend on a dynamic postal market. In short, delaying the process 
would give the wrong signal to the market. 

In the absence of further market opening, additional regulatory intervention would be required 
to  stimulate  and  guide  competition  without  necessarily  ensuring  greater  efficiency  and 
customer  focus.  This  would  run  counter  to  the  idea  of  better  and  more  focused  regulation 
which is the approach increasingly adopted across the EU20.  

5. 

COMPLEMENTARY  AND  ACCOMPANYING  MEASURES  TO  SAFEGUARD  UNIVERSAL 
SERVICE UNDER FULL MARKET OPENING 

5.1. 

Different layers of measures: market forces, EU/ Member States regulation  

There  is  a  set  of  possibilities  which  will  result  from  market  forces  and  EU  or  national 
regulation, which will assist market opening while safeguarding universal service. The initial 
step is the commitment of universal service providers to adapt to the new situation and allow 
universal service to benefit from dynamic efficiencies (through reorganisation, more customer 
orientation,  or  adaptation  of  the  workforce).  The  second  step  is  to  provide  postal  customers 
with  additional  safeguards  for  universal  service  through  the  regulatory  framework  at  EU 
and/or Member State level. Finally, if needed and justified, the possibility to request funding 
for the universal service should be available.  

In  that  order,  these  different  measures  offer  a  wide  range  of  options  for  decision  makers  to 
choose from so as to meet best their national specificities. Numerous research and case studies 
confirm  that  these  measures  can  be  implemented  with  the  appropriate  commitment  of 
stakeholders21. 

5.2.  Market answers: dynamic efficiencies  

Developing volumes 

In  view  of  the  importance  of  economies  of  scale  for  the  universal  service  provision,  mail 
volumes are a key contributor to smoothen the potential impact of market opening. There are 
significant growth expectations for markets with low volumes per capita22, notably those that 
are likely to be the most affected by market opening23. Finally, extended partnership with the 
mailing  industry  can  significantly  improve  conditions  to  further  develop  volumes.  By 

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"Better Regulation for Growth and Jobs in the European Union" - SEC(2005) 175. 
Wik 2004; Ecorys 2005; WIK 2006; BCG 2006; PwC 2006. 
Wik 2006 p. 202. 
PwC 2006 p. 119. 

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stimulating the use of mail as a media – including direct mail as a main contributor - , these 
factors will contribute directly and indirectly to the provision of universal service.  

Diversifying revenues 

There  are  market  opportunities  for  postal  operators,  given  some  commercial  freedom,  to 
diversify their revenues and take benefit of economies of scope. On the basis of internal cross 
subsidies, universal service providers may indirectly secure their ability to provide universal 
postal  service  if  necessary.  There  is  ample  room  for  postal  operators  to  further  engage 
successfully in adding activities to the value chain and building a wider portfolio of services. 
Many operators of different size and scale of ambition have already engaged successfully in 
post  bank  activities,  the  development  of  retail  activities,  logistics  and  express,  regional  or 
international developments, or increased partnerships with the logistics industry24. 

Restructuring of the universal service providers 

Reorganisation  of  incumbents’  operations  is  a  key  element  in  the  adaptation  to  full  market 
opening,  which  should  enable  them  to  face  competition  while  maintaining  the  level  of 
universal service, and in fact to provide all users with more efficient services. A number of 
benchmarks indicate that there is ample room for cost reduction and highlight possibilities to 
restructure within different timeframes and modalities25. 

Finally, since a large percentage of the labour force is approaching retirement age, it should 
be possible to gradually adapt the employment level, if this becomes necessary to adapt to the 
new market situation. 

5.3. 

Regulatory safeguards  

There  is  no  one  single  solution  to  prepare  for  market  opening.  A  combination  of  different 
proactive measures at market level and the firm commitment to  reform will  allow universal 
service providers to face, and to benefit from, market opening. In addition, certain regulatory 
measures may be appropriate as complementary safeguards for universal service. 

Measures to ensure the universal service  

The  Postal  Directive  (e.g.,  Articles  4  and  22)  explicitly  provides  Member  States  with  the 
framework  for  securing  universal  service  provision,  including  explicit  requirements  on 
customer protection. National Regulatory Authorities established through the Postal Directive 
are best suited to monitor the provision of universal service and to take appropriate measures, 
should it be at risk. They have the possibility to determine the most efficient and appropriate 
mechanism  to  guarantee  the  availability  of  the  universal  service,  while  respecting  the 
principles  of  objectivity,  transparency,  non  discrimination,  proportionality  and  least  market 
distortion.  

Access to the universal service provider's infrastructure 

While access to the universal service provider’s infrastructure in a multi-operator environment 
may  well  be  safeguarded  by  agreements  amongst  the  operators,  as  the  Swedish  example 

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Wik 2004; BCG 2006; PwC 2006. 
PwC 2006 p. 177; BCG 2006 p. 52. 

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demonstrates, National Regulatory Authorities may also assume a monitoring function in this 
regard. 

Appropriate downstream access regimes (granting competitors access to the delivery network 
of the incumbent) can contribute to funding of rural routes or high cost areas26. This issue can 
best  be  dealt  with  at  national  level  to  allow  for  flexibility  and  take  account  of  national 
circumstances. 

Commercial flexibility for business mail 

Removing price uniformity constraints for business mail and giving some appropriate pricing 
flexibility  to  universal  service  providers  will  assist  them  significantly  in  adapting  to  market 
opening27. 

Joint role of regulatory and competition authorities 

There  is  a  risk  that  competition  will  not  develop  as  anticipated  and  that  the  benefits  of 
competition  highlighted  in  the  previous  sections  are  not  met.  Competition  is  fragile  in  the 
initial phase, and there will be a need for adequate monitoring by regulatory and competition 
authorities28. 

Use of license regimes in exceptional circumstances 

If  appropriate  and  proportionate,  licence  regimes  may  continue  allowing  the  introduction  of 
specific  requirements 
to  new  postal  operators  concerning  quality,  availability  and 
performance of the relevant service so as to safeguard universal service. 

Price cap mechanisms 

The  national  regulator  has  the  capacity  (on  the  basis  of  adequate  price  cap  mechanisms)  to 
control  the  extent  and  pace  of  any  eventual  price  increase  and  to  maintain  prices  at  a 
reasonable and justified level.  

5.4. 

Safeguards relating to financing of the universal service 

Even after Member States have introduced the necessary measures to facilitate the adaptation 
of the regulatory and market environment to conditions of greater competition29, it cannot be 
excluded  that  in  some  Member  States  the  financing  of  any  residual  justified  net  costs  of 
provision  of  the  universal  service  may  still  be  required.  A  set  of  alternative  options  to  the 
reserved area is available to provide for compensation (state aid, sector fees or compensation 
fund) or to find alternative ways to provide the service (public tendering, imposing universal 
service obligations on other operators). These mechanisms, possibly complementary, can be 
implemented at national level to the extent that they are needed and adequately justified. The 
implied proportionality test would induce more discipline than the reserved area. 

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29 

PwC 2006 p. 129; Wik 2005 p. 94. 
Wik 2005 p. 138; PwC 2006 p. 115. 
"The  impact  of  competitive  entry  into  the  Swedish  postal  market",  Cohen  R  et  al  2006;  Wik  2005; 
Ecorys 2005; Wik 2006 Annex A2. 
See  the  Commission  proposal  on  postal  VAT  -  COM(2003)  234  as  amended  by  COM(2004)  468  -  
which is still under consideration in the Council. 

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6. 

CONCLUSION 

Universal service can be safeguarded with full market opening in 2009 

On  balance,  the  approach  chosen  by  EU  legislators  15  years  ago,  namely  the  full 
accomplishment of the postal internal market together with a high quality of postal universal 
service appears to be sustainable and can be achieved by 2009 in all Member States. On the 
contrary, there are serious risks in delaying the process as the market is evolving quickly and 
needs  further  reform.  The  postal  universal  service,  customers  including  consumers,  and 
employment  levels,  would  be  best  served  if  this  evolution  was  accompanied  by  adequate 
regulatory monitoring, enabling actors to better interact in a competitive market. 

For  the  European  postal  regulatory  framework,  the  failure  to  acknowledge  the  evolving 
market developments may put pressure on the long-term sustainability of the universal service 
by not giving the right incentives to market forces.  

Safeguard measures and alternative funding mechanisms are in place 

Where necessary, a set of assisting measures are already in place, or could be made available, 
that provide universal service with the adequate support alongside the market evolution and 
thus ensure that EU citizens’ needs are met by an efficient and reliable postal service. Such 
measures  can  also  assist  specific  markets  where  the  level  of  preparedness  of  the  universal 
service provider would still be insufficient.  

Alternative  financing  mechanisms  have  been  identified  to  compensate,  if  necessary  and 
proportionate,  for  the  provision  of  universal  service.  Within  the  EU  postal  framework, 
subsidiarity  will  enable  that  the  best-adapted  combination  of  the  different  measures  can  be 
implemented to safeguard universal service. 

Next steps 

Full  market  opening  is  only  a  start  towards  the  goal  of  having  an  effective  competitive 
market,  which  will  secure  the  long-term  sustainability  of  universal  postal  service.  A  market 
transition  period  is  foreseen  where  market  forces  will  adapt  to  the  new  situation.  Once  the 
postal market has stabilized, assisting regulatory measures may cease to be needed and/or new 
ones  may  prove  necessary.  During  this  transition,  market  operators  will  have  to  adapt  and 
regulators  will  need  to  monitor  carefully  developments  to  make  sure  that  EU  citizens  and 
businesses  can  benefit  fully  from  a  high  level  universal  service  and  the  increased  customer 
focus of all postal actors.  

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