Postcomm statement on Royal Mail's industry consultation on zonal access price structures (UK)

Postcomm welcomes Royal Mail’s industry consultation on a revised zonal access price structure. This consultation impacts on two projects which Postcomm has been undertaking over the past several months.

The first project is Postcomm’s general review of zonal access pricing (under which Royal Mail charges a zonal price for delivering mail to the “final mile” for large customers and other postal operators).

The second project concerns TNT Post UK Limited’s request to Postcomm for a direction under Condition 9 of Royal Mail’s licence for two access products, both of which it requested to be zonally priced but with a two zone pricing structure.

Postcomm hopes that Royal Mail, TNT Post and the wider industry will be able to work together to put in place appropriate terms for both zonally priced access and nationally priced access to the Royal Mail network. If agreed, these new arrangements could help to secure the provision of a strong and self financed universal service in parallel with the development and sustainability of both access and end-to-end competition.

We are asking Royal Mail to finalise its consultation initiated by this industry letter and to report its findings to Postcomm and the industry by the end of October 2008 (and, if appropriate, to request modifications to its licence). If the consultation has not been concluded successfully during this period, Postcomm will reassess the need to propose a direction in relation to TNT Post’s direction request for a different zonal access price structure. Should this be necessary we would expect to issue a proposed direction in December 2008.

Postcomm will aim to publish its observations on Royal Mail’s industry consultation by the end of August 2008.