Traficom granted government grants for newspaper delivery - the aim is to secure a comprehensive delivery network in the whole country

The purpose of the government grants for newspaper deliveries are to create prerequisites for newspaper delivery on five business days each week in areas with no commercial early delivery network for newspapers and with no comprehensive five-day early delivery. 

“Traficom has determined a maximum price that the delivery company can charge from the newspaper publishers. The purpose of the grant is to cover the net costs caused by newspaper delivery, meaning the part of the costs that is not covered by the delivery price charged from newspaper publishers”, the Communications Market Specialist Sami Vilvala clarifies. “The grant was available for 38 areas in total. The company that was chosen to receive the grant promised to deliver the newspapers covered by the grant on Tuesdays and Thursdays with the smallest grant amount. The applicant had to also fulfil the other terms and conditions of the grant”, Vilvala continues.

EUR 7 million of the government grant was granted to 18 areas across Finland

Traficom granted the government grant to 18 areas in Finland. Applications that met the terms and conditions for the grant were received for 18 areas, and of these, two areas had more than one application. The applicants consisted of four companies in total. Based on the lowest grant amount applied for, Posti received a positive grant decision in 17 different areas and the commercial name Jyrki Ruokamo in one area. No applications fulfilling the terms and conditions were received for the 20 grant areas in Lapland. For these areas, Traficom assigns Posti Distribution Ltd. a public service obligation under the Postal Act to secure a comprehensive newspaper delivery network.

Of the EUR 15 million reserved for the government grant, approximately EUR 7 million was granted now. The final grant amount is determined according to the actual costs incurred in fulfilling the service obligation. The final grant cannot exceed the sum defined in the grant decision. Additionally, Posti Distribution Ltd. can be reimbursed afterwards from the grant for the costs caused by the public service obligation imposed on the municipalities of Lapland. The final total sum is thus not yet known, but the goal of the continuity of a nationwide newspaper delivery service on its current level will be reached with the reserved grant amount. The government grant period for the grant now given begins on 1 October 2023 and ends on 30 September 2024. 

The grant that secures newspaper delivery will be extended within the budget. The next grant period starts on 1 October 2024. “Before starting the next round of applications, we will collect experiences from different parties. Traficom monitors the effects of the government grants it gives on the market. The purpose is also to develop the grant model in such a way that it meets the goals of all parties involved as well as possible", Vilvala states.