Our Network Of Public Enterprises Universal Service Implementation Mechanism

It is essence for universal service to cover with all the areas and people. Without reference to profitable or profitless, the universal service should be provided. When the cost of universal service is higher than the revenue, it is called universal service obligation(uso). Public utility with network belongs to the basic facilities. It is an economic man essentially. Now, the public utility is obliged to bear the loss for its universal service, but the government should be the last promoter and undertaker of universal service. In short, the government is a principal of the universal service, and the public utility is an agent of it.The existing mechanism of subsidization includes cross-subsidization and financial subsidization. As the demand and technology change, the cross-subsidization and policy-related subsidization become inefficient, whereas, it is inescapable for cross-management subsidization and financial subsidization.As the agent of universal service, the postal sector provides the universal sendee through its development and network structure. The government and the postal sector should try their best to rebuild the institution, and clarify that the network structure is not just pure monopoly or pure competition. So that universal service can be realized efficiently on the network of duality.The concept of universal service changes as countries and industries change. The article analyzes the universal service of China Post. First, we should clarify the scope and characteristic of the postal universal service, and then analysis the status and problem of the postal universal service. Against the background of WTO entry and technology changing and reform of the post, we should benefit from experience of other countries, so that the postal universal service can be realized better. In the long run, the financial subsidization is the most practical and efficient way to realize universal service. In the short run, China post should provide basic universal service; at the same time, it should provide other universal service according to various demands on the basis of dual network. So the mechanism of universal service can be realized gradually in different areas.