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Regulatory experts advocate customer focus in postal policymaking

Postal regulators, experts and private sector players gathered for the UPU’s Conference on Postal Regulation on 5 May 2026 to tackle big questions facing the postal sector, including how postal markets are defined and the implications for regulatory oversight.

The conference, held during the UPU’s Council of Administration (CA) under the theme “Beyond the mailbox: redefining the boundaries of the postal sector”, was the first of the Dubai Cycle (2026-2029).

Speaking during the opening of the conference, UPU Secretary General Masahiko Metoki highlighted the importance of the meeting of regulatory minds to find pragmatic approaches to evolving the sector in a rapidly changing environment.

“Our intention is not merely to describe trends but to identify practical, policy‑ready approaches that strengthen oversight, promote fair competition, protect consumers and enable postal operators to continue delivering social and economic value,” the Secretary General said, adding, “Today’s debate will help to inform the work of the Council of Administration and support member countries as they craft regulatory responses that are fit for purpose.”

Scene-setting keynote

Keynote speaker Roel Gevaers, a professor with the University of Antwerp’s Department of Transport and Regional Economics, presented participants with a postal state-of-play.

Gevaers homed in on changing industry dynamics in the parcels market with the growth of the e-commerce sector. Research reviewing the market between 2000 and 2024 shows a stark shift in the roles of postal operators, integrators, parcel operators and e-commerce marketplaces. Once kingpins, postal operators are now merely complementors in the global e-commerce market. Meanwhile, e-commerce marketplaces have consolidated their influence as the kingpins, bottlenecks and orchestrators of today.

“Who owns the consumer data has a huge impact on the moves we’ve seen in the market over the past several years,” he explained, adding that emerging C2C e-commerce markets should not be underestimated in the sector’s evolution.

Defining postal markets and services

The first panel reviewed how markets, players and services may be converging.

Joakim Levin, Acting Head of the Swedish Post and Telecom Authority Postal Affairs Unit, presented the Swedish regulator’s recent overhaul of postal market definitions, explaining a new approach based on item content, rather than format. While the regulator assessed the parcels market for any gaps requiring inclusion in the country’s universal service obligation, it found none.

Rather, several providers ensured cross-country coverage at reasonable prices. Letters tell a different story with market analysis clearly informing the continued need for their inclusion in the USO.

Brian Mwansa, Acting Executive Secretary of the Communications Regulator’s Association of Southern Africa, emphasized the importance of defining the market to avoid both over- or under-regulation, but stressed that these definitions must be flexible and based on service needs rather than service providers.

“We are no longer looking at legacy concepts and institutional labels, we are looking at a market-based approach centered on demand substitution and evolving business models,” he said.

Michael Funk, Principal Economist at Swiss Economics, mapped out the current market, providing multiple possible factors for sector definitions including: geographical dimensions, parcel size, delivery channel, sender, recipient, shipment direction, last mile execution, firm structure and geographical origin.

They agreed that a shift towards a service-based approach to sector definitions would help minimize gaps where the traditional postal lines are being blurred with transport and logistics. Customer needs are revolutionizing what should be included when reviewing universal service provision and may lead to shared delivery of certain services.

With that said, panelists agreed there was no one-size-fits-all definition for the entire UPU network but suggested a uniform methodology might help regulators begin the redefinition process, while ensuring citizens and businesses alike maintain equal access to the services they need.

Reviewing the regulatory remit

The second panel delved further into possible common approaches, taking a particular look at the difference in services being offered by traditional postal operators versus vertically integrated platforms, such as e-commerce marketplaces that have launched their own delivery services.

Paolo Alagia, Head of the Regulation and Universal Service Unit at the Italian Communications Regulatory Authority, proposed focusing on setting two key boundaries for regulation – an external boundary that defines what the postal sector is, and an internal boundary defining product or service types. Whilst clear criteria are essential for boundary demarcation, he argued that vertically integrated operators may provide logistics services that qualify as postal services. He concluded with the observation that regulation must evolve with users’ needs.

Providing a private sector perspective, Adam Tomczak, Head of International Delivery & Solutions Development at Polish online marketplace, Allegro, presented how the company has become a vertically integrated platform out of necessity in its drive to meet customer expectations. While the company has acquired its own delivery services, it still works with partners – but only those who can meet its customers’ standards for perfect delivery.

“We cannot risk that last mile,” he said.

Antonia Niederprüm, Head of Postal Services and Logistics at WIK Consult, added that vertically integrated platforms may be considered as postal providers, but that a distinction could be made between what falls purely in the postal remit and what requires a horizontal approach to regulation. Addressing market failures and securing the universal service without burdening innovation with weighty regulations on emerging business was the key challenge of designing postal definitions, she explained.

Panelists agreed that regulators needed to shift their approach to assess real customer needs and let go of “nostalgic” postal definitions that were limiting the scope of their remit. They agreed that whilst postal definitions could vary by country, a common framework methodology could be devised that would allow each country to set their own accents. The UPU, as a forum for cross-sector collaboration, would be critical in helping set standards to support this process.

In closing remarks to the conference, UPU Assistant Secretary General Marjan Osvald reemphasized the need to keep the customer front of mind.

“Think about your customer, as I am thinking about UPU customers,” he said.

The next UPU Conference on Postal Regulation will take place during the CA’s autumn sessions later this year.