Hay wins license to take on Royal Mail

RNS Number:0789K
Postcomm
17 September 2001

17 September 2001
Postcomm licenses Hays to compete with Royal Mail

Postcomm today issued a licence to Hays Commercial Services Ltd to provide a
number of niche postal services in competition with Royal Mail. It is the first
licence issued to a private company to pilot new services in the former monopoly
area reserved for Royal Mail.

The licence covers three areas of work:

* collecting and sorting mail sent by customers of Hays’ existing document
exchange (DX) service, and transmitting non-DX mail in bulk for delivery by
Royal Mail, to take advantage of Royal Mail’s ‘workshare’ discount

* a pre – 8am delivery service of letters sent by customers of Hays’
existing document exchange (DX) service to other business premises in the London
EC and WC, Edinburgh EH1 and EH2 and Manchester M1- M5 and M60 postal districts,
and

* the delivery of items weighing less than 350 grams and costing less than
#1 to named customers of Hays’ Mailine service in the insurance, travel,
opticians’, licensed betting and retail financial services industries.

The licence takes effect immediately. Postcomm may terminate the licence after
twelve months, during which time Postcomm will assess the effects of Hays’
services and develop its longer term licensing policy. It will then review
whether the licensed activity should continue, and if so, on what terms

Postcomm consulted interested parties before issuing the licence and received
seven responses. After considering these, it is of the view that:

* the licence terms will have no appreciable effect on Royal Mail’s
provision of a universal postal service throughout the UK, and

* the licence will further the interests of users of postal services by
promoting competition.

Notes for Editors

Postcomm’s decision document, and detailed responses to the consultation, are on
the Postcomm website: www.psc.gov.uk.

Postcomm – the Postal Services Commission – is an independent regulator. It has
been set up to further the interests of users of postal services. Postcomm’s
other main tasks are to:

* Seek to ensure a universal postal service at a uniform tariff
* Encourage competition in postal services
* Licence postal operators
* Control postal prices and quality of service
* Give advice on the future of the sub post office network.

Postcomm’s policies are steered by a board of seven commissioners, headed by the
chairman, Graham Corbett CBE.