Will deregulation really end Consignias monopoly?

“The proposals from Postcomm to open up the universal postal service to full competition have been widely supported by businesses. But questions remain unanswered: how long will it take before there is true competition; how level will the post-monopoly playing field be; or will Consignia continue to hold all the cards?
As one of the companies awarded a licence by Postcomm in 2001, Deya has been examining the opportunities offered by the new market. We have found that there are significant barriers in place that will greatly hinder the setting up of an alternative service.
Our experience since being awarded the licence has highlighted two key issues that will affect other companies trying to break into the market
— mailing house software and the price of access to the Consignia network
Currently all mailing houses run software designed to interface with the Post Office. Will there be any incentive for these mailing houses to invest in alternatives?
There will be price pressure from Consignia to maintain low prices upstream, as this area will suffer most competition from large players such as Hay and TNT. These firms already have relationships with business customers that lend themselves to collecting and sorting mail for return to Consignia lower down the chain. It is crucial that the access charging issue is resolved before a competitive product can be modelled.
People are often shocked that the prices for delivering a few thousand items nationally are closer to courier rates than to first-class postage. It will stay this way until barriers to competition are removed.