USPS OIG: Funding the Universal Service Obligation


USPS OIG: Historically the purpose of the postal monopolies has been to ensure the postal Service has adequate revenue to cover the cost of its universal service obligation. The combination of decline in letter mail and the the price cap on monopoly products has challenged the ability of the monopolies to earn sufficient revenue. The OIG looked at various funding alternatives and suggest three that are viable – monopopoly with increased pricing flexibility, direct subsidy, and diversification.  Read more: Funding the Universal Service Obligation | USPS Office of Inspector General