Postcomm recommends privatisation of Royal Mail (UK)

Postcomm, the UK postal regulator, has said that it has proposed to an independent review committee on postal services, to partly privatize Royal Mail to bail it out from financial deterioration.

The BBC News has quoted Nigel Stapleton, chairman of Postcomm, as saying: “Postcomm wants to see the government and Royal Mail embrace a partnership approach with the private sector to secure a universal service.”

Postcomm has said that Royal Mail required capital to restructure itself and become profitable. Mr Stapleton has said that Royal Mail may require a subsidy if the government decides against privatization.

Royal Mail was the only mail service in the UK till 2006, when the gates were opened for private players to deliver mails. But it still controls 90% of market share, the BBC News has said.

Postcomm has also proposed that the controller of post office network, Post Offices, be separated from Royal Mail.