Leighton threat scuppers Deutsche Post UK launch
Deutsche Post Mail Services UK has stalled plans to challenge Royal Mail’s monopoly in the lucrative business market in the wake of chairman Allan Leighton’s threat to launch a legal challenge to Postcomm’s final access price.
The company, a subsidiary of Deutsche Post Global Mail UK, had expected to enter the UK market last November. But Leighton’s threat to fight the 11.88p access price (PM May 23) has forced a rethink.
“Until the process has taken its course, we can’t establish commercial access terms,” explains Deutsche Post Mail Services marketing director Andy Barrett. “We had planned to be up and running by June. But we are dependent on the outcome of the price determination. If it does go to court, who knows how long it could take.”
Royal Mail’s wrangling has already put Deya off entering the market altogether, forcing it to withdraw its application for a licence in February. Meanwhile Dutch-owned TPG is said to be devising its own network to avoid using Royal Mail.
Deutsche Post plans to provide business mail delivery by collecting and feeding post into the Royal Mail network. It aims to claim around 3 to 4 per cent of the UK’s GBP4.5bn postal market. However, mailings designed by the JJ Group for its launch campaign have been put into storage until the situation is resolved.
