The PTA provides authorisations for the operation of postal services and supervises postal affairs and the execution of the laws about postal service.
The state of Iceland has a monopoly in postal service with respect to letters up to 50 g. weight. Iceland Post is entrusted with this monopoly.
The PTA oversees the commercial terms of postal operators and the tariffs for universal service. Tariff schedules for services that fall under the monopoly of the State must be sent to the PTA for approval. Terms for universal services must define the access of users to the service and the quality of service. In addition the PTA enforces rules for the handling of mail and undelivered mail.
Authorisations for the provision of postal services are of two types:
General authorisations and operating licenses. An operating license is only required for the provision of universal service.
The PTA is authorised to delegate obligations of universal service for the whole of Iceland or limited parts of the service in demarcated areas.