Competition and Regulation in the Postal and Delivery Sector
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Competition and Regulation in the Postal and Delivery Sector

Edited by Michael A. Crew and Paul R. Kleindorfer

orldwide, postal and delivery economics has attracted considerable interest. Numerous questions have arisen, including the role of regulation, funding the Universal Service Obligation, postal reform in Europe, Asia and North America, the future of national postal operators, demand and pricing strategies, and the principles that should govern the introduction of competition. Collected here are responses to these questions in the form of 24 essays written by researchers, practitioners, and senior managers from throughout the world.
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Chapter 7: Substitution of Letter Mail for Different Sender–Receiver Segments

Heikki Nikali


7. Substitution of letter mail for different sender–receiver segments Heikki Nikali 1. INTRODUCTION As far as the development of addressed mail is concerned, the following trends are to be observed in many countries: B2B volume is decreasing, B2C volume is growing or at least remaining stable, and the volume of C2C is falling (Critelli, 2005). These differences may be explained by differences in how the implementation of new technology succeeds in specific segments. It is not only a question of the economic opportunities afforded by new technology, but also of the desire and ability to use it. Further, the pricing of letters can be made to vary according to segment, which also affects letter services demand. When the development of letter1 volumes in Finland is analysed in different sender– receiver segments, considerable variation is to be observed. Volumes are shown in Figure 7.1. The total number of B2B letters has steadily decreased since 1991 for the whole period under review. Yet during the 2000s the decrease in volume in this sector has began to acquire new features: although the trend is downwards, the changes that occur vary considerably from year to year. In the B2C sector volume has grown, which has meant that total volume has remained fairly stable. The number of letters sent by consumers grew slightly during the whole of the 1990s, but since 2000 there has been continual decrease. It can therefore be stated that all sectors behave di...

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