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Cost model for postal distribution in France

Expertise : Regulation

Business challenge

  • In the context of regulating the postal sector (price cap and the cost of Universal Service), ARCEP wanted to have a cost model of the postal delivery activity in France.
  • The complexity of the model, due to the variety of products and the geographic and demographic diversity in France, led ARCEP to outsource the construction of this model to TERA Consultants.


A model simulating the cost of a local or nationwide postal operator was developed based on:

  • The collection of operational data of French and European postal operators,
  • The academic literature on postal economics,
  • The use of geo data to determine optimal routes

Benefits and results

  • The model was accepted by ARCEP and is currently used in the process of postal regulation.
  • The model was presented in an official publication of ARCEP in 2012.