Postcomm reviews current licensing rules
Postcomm, the independent regulator for postal services, is seeking views on the current licensing regime to ensure that it continues to support the development of the UK postal market.
Four years after the market was first opened to competition the current licensing regime has seen 18 new entrants to the market. Confidence in the market has been maintained as mail operators have broadly achieved high standards of service quality and customer focus. However, Postcomm have been sensitive to suggestions that the current licensing arrangements could do more to facilitate market entry for some small and medium sized potential mail operators – and therefore promote the development of choice and innovation for mail users.
Accordingly, the regulator has launched a consultation on proposals to move to a form of less prescriptive licensing for those seeking to enter the postal services market. Some of the key proposals include:
Removing the annual fee – currently GBP 1,000 – for all licensees with a turnover of less than GBP 10 million (licensees with a turnover of more than GBP 10 million pay an annual fee based on its size);
Reducing the current application fee to GBP 50 for all applicants;
Removing the requirement for applicants to provide, as part of the application process, information on exactly how they would comply with Postcomm’s mandatory mail integrity code; and
Removing the requirement for both existing licensees and future applicants to provide a financial guarantee.
The current licensing regime came into effect in January 2006. These latest proposals form the first of a two stage licensing review. Taking forward the review in two stages will allow Postcomm to deliver early improvements within the existing framework through stage one while focussing on more detailed changes in stage two.
This first stage proposes amendments to the current licensing framework. If accepted, the proposed amendments would be implemented in November 2007. Stage two of the review – a more fundamental review of Postcomm’s licensing framework which will consider all aspects of the licensing framework – will commence in 2008.
Postcomm’s aim during both stages will be to ensure its licensing rules support the developing UK postal market.
Notes for editors
Responses are required on or before 20 August 2007.
Today’s proposals would not affect Postcomm’s regulation of, or the requirements on, Royal Mail. As the UK’s dominant postal operator with more than 90% of the mail market and provider of the universal postal service (which includes the ‘one price goes anywhere’ stamp and daily collections and deliveries for all UK addresses), the company must be subject to more rigorous regulatory requirements to protect the interests of customers.
