Postcomm annual report looks back on a year of significant change

Postcomm’s 2006/07 annual report published today covers the first full year during which two significant Postcomm policy initiatives took effect: Royal Mail’s long-standing monopoly of the mail market was removed completely at the start of 2006 and a new four year price and service quality control came into effect on 1 April 2006.

Royal Mail still has a virtual monopoly over the final mile with less than 1% of the mail now being delivered end-to-end by rival operators. However, ‘access’ competition has developed to a more significant extent. Currently nearly a quarter of bulk business mail is collected from the mailer by rival operators and handed over to Royal Mail for delivery ‘the final mile’. More than 70% of the total revenues in this access competition structure are retained by Royal Mail.