Postwatch looks forward to a free market

Postwatch welcome’s Postcomm’s decision to fully open the market on 1
January 2006. This is good news as competition is the best way to ensure
customers receive service and choice at the best possible price.

Full competition will re-enforce, not undermine, the delivery of the
universal service. The main threat to this service – nationwide daily
deliveries and collections at uniform prices – is an inefficient Royal Mail.
Liberalisation is good for Royal Mail, as it will maintain the pressure to
deliver quality of service to customers, improve efficiency and drive
innovation.

Peter Carr Chairman of Postwatch said: “This is welcome confirmation of a
policy which will ultimately benefit all users of mail services. As
indicated, there remain significant problems before the playing field is
levelled for full competition (e.g VAT, access price and conditions). This
is now urgent and Postcomm must act against any operator behaving unfairly
in the market – including Royal Mail”.

Notes to Editors:

1. It will be some time before customers are able to access the services of
competitors. In particular social customers are unlikely to be able to post
mail using another operator for the foreseeable future. They are receiving
mail carried by other operators and we hope that these companies will
provide more innovative delivery solutions.

2. Despite 30% of the market being open to competition since January 2003,
Royal Mail still has over 99 per cent market share. Royal mail has
significantly improved its financial position. Last year it made a profit
of £348 million on regulated products

More Information:

Call Daryl Barrett on 0207 259 1239 or 07900 263 020

Robert Forsyth on 07900 263 014