Postcomm proposes to reject Royal Mail's zonal pricing application

Postcomm, the independent regulator for postal services, has announced that it is proposing to reject Royal Mail’s application to charge large mailers – using products which are not part of the universal service – different prices depending on where in the UK their mail is delivered (Royal Mail calls this zonal pricing).
Postcomm will issue a consultation document in August that will set out in detail why it is proposing to reject Royal Mail’s application. However, in the interests of reducing market uncertainty, the regulator is making this announcement today.
Royal Mail’s ‘zonal pricing’ application did not include services paid for by stamps or those bulk mail products that are included within the definition of the universal service which must, under the Postal Services Act, remain priced at a uniform rate regardless of delivery zone across the country. It is open to Royal Mail to submit a new application if it can be framed to meet the regulatory tests in Royal Mail’s licence and Postcomm’s statutory duties.
Royal Mail wanted to introduce this new pricing structure to these business mail products:
Mailsort 120 – first, second and third class, OCR and CBC;
Mailsort 700 – first, second and third class
Mailsort 1400 – third class;
Presstream – first and second class; and
Walksort – first and second class.