UK Royal Mail confirms dates for price change announcements

Royal Mail has confirmed that an announcement regarding price changes for the existing Presstream tariff will be made on 15 December. Any changes would take effect from April 2006 and would apply until 21 August 2006 when the new Pricing in Proportion (PiP) tariff will be implemented. Royal Mail has confirmed that it will be announcing PiP prices in March 2006.

Meanwhile PPA is due to make a final submission to Postcomm regarding the regulator’s intention to withdraw Presstream from the regulated area.

PPA has challenged Postcomm to justify its decision, which would take effect from April 2006, on the basis that due to the limited geographical reach of alternative operators there is currently no effective competition to Royal Mail able to provide a universal service which could meet the needs of publishers and/or their customers.

PPA has pointed out that all the evidence suggests that this situation is unlikely to change for the foreseeable future and that other channels of distribution, such as the newstrade supply chain, simply cannot be regarded as competitors since in the case of almost all business to business and most customer magazines, newsstand distribution is not an alternative as the reader does not pay for the publication. PPA has also presented evidence to Postcomm showing that Mailsort would not offer a viable alternative to Presstream.

Postcomm is expected to announce its decision in late November or early December.