Business Post signs access deal with Royal Mail

LONDON, Dec 17 (Reuters) – British mail firm Business Post Group Plc said on Wednesday it had signed an outline agreement with Royal Mail giving it access to the state-owned postal operator’s local sorting and final delivery network.

Business Post said in a statement the terms envisaged under the agreement were confidential, but took a similar form to those suggested by industry regulator Postcomm in May.

“We welcome the prospect of an amicable agreement with the Royal Mail, which will be providing an integral part of UK Mail’s service,” Business Post Chief Executive Paul Carvell said.

Postcomm said it would postpone the publication of its proposals on the price Royal Mail should charge for access until the end of January to allow the two firms to finalise the deal.

Postcomm was asked to determine a price after talks between the two firms originally broke down. The regulator’s final proposals were due to be published this week.

Postcomm Chairman Graham Corbett welcomed the deal.

“This is excellent news that should benefit both businesses and consumers,” Corbett said in a statement.

“I expect competition in postal services to begin to gather pace now that Royal Mail recognises the commercial advantages of agreeing access prices with operators for its final mile delivery.”