UK Postal competiton hots up
The Royal Mail is facing growing competition in the deregulated postal market, with rival firms already snapping up large contracts.
Last week TNT Mail, part of the TPG Group that owns the Dutch national post office, revealed that it has secured a further five customers in three months of operation. Its client base now totals 25 and includes names such as Sky, Caudwell Communications and Specsavers.
Chief executive officer Nick Wells said: “Business cannot afford to ignore the opportunities now available in the deregulated postal market. Every financial director of every company should be looking at how we can make their mailing budgets work harder for them.”
TNT Mail began operations in late August. It currently handles 1 million items of post every week and expects this to double in 2005 from the existing customer base alone. Postal regulator Postcomm is keeping a close eye on competition in the postal market to ensure that Royal Mail does not use its monopoly position to obstruct competitive services. It has already been warned not to deviate from its agreed pricing structure after some customers had been offered discounts to get them to send more catalogues.
The regulator issued an enforcement order as a result of the two breaches of its licence conditions. Consequently, Royal Mail will have to train all sales staff in European and UK competition law and in the obligations of its licence.
Furthermore its compliance officer will become more involved and any new promotions will be referred via an approval process.
