Royal Mail's application for the deregulation of packet products
On 20 November 2008 Royal Mail submitted an application to Postcomm to remove the current price controls (Condition 21 of its licence) for a number of packet products and product formats.
Royal Mail’s application is based on its belief that that competition is sufficiently developed to protect the interest of users of packet products.
This application does not include the universal service products used by customers when sending parcels and packets at Post Offices.
Postcomm believes that Royal Mail’s application will be of considerable interest to competitors, both licensed and unlicensed, and to customers who use packet products. Postcomm will publish a non-confidential version of the application as soon as possible.
Postcomm first has to consider whether the information that has been provided by Royal Mail is sufficient and of good quality. We anticipate that this process (and requesting additional information from Royal Mail if it is needed) will take until February 2009.
Once there is sufficient information of good quality, Postcomm will consider whether competition is sufficiently developed to protect customers if price controls are removed. This analysis will then be subject to consultation with all stakeholders in summer 2009.
Royal Mail has also asked Postcomm to remove the requirement for it to provide notification of changes (under Condition 7 of its licence) to those packet products from which the price control is removed (if there are any). In addition, Royal Mail is seeking an exemption from Condition 7 for two additional packet products: Royal Mail Tracked and Mail Order Returns which are not currently price controlled.
Further information about Royal Mail’s application and the timescales for considering the application will be published on the Postcomm website as the information is available. Royal Mail will also publish information on its website about the application that it has made.
