Consignia welcomes review of its Universal Service concerns over Hays Licence
CONSIGNIA WELCOMES REVIEW OF ITS UNIVERSAL SERVICE CONCERNS OVER HAYS LICENCE
From PA NEWS, September 17th, 2001
:: PR Newswire, London, September 17. This press release is transmitted on
behalf of Consignia.
Commenting on Postcomm’s decision to award a licence to Hays, Consignia
said today it remained concerned at the impact of the move on its ability to
continue providing a Universal Service whereby addresses everywhere get a
postal service at a uniform price.
Consignia, therefore, welcomed Postcomm’s commitment to review the effect
on the Universal Service arising from the postal regulator’s decision to give
Hays a licence.
“In giving a licence to Hays, there is a clear message being sent.
Postcomm is now prepared to look favourably on applications for postal
licences from any company that wants to pick its customers and offer a mail
service at less than the basic 27p First Class stamp,” said Stuart Sweetman,
Consignia’s Group Managing Director for Strategy and Business Development.
“Hays can cream-skim the market by picking and choosing its customers,
yet competition law prohibits Consignia from selectively lowering its prices
to compete directly against it. This is the most effective way Consignia can
compete with an operation such as Hays.
“There is nothing innovative about the overnight service Hays wants to
provide. It carries no guarantee and is essentially the same as Royal Mail’s
First Class service. Its main selling point will be its price which is bound
to undercut the 27p basic postage,” said Mr Sweetman.
Consignia is working hard to develop its services, stressed Mr Sweetman.
“A number of options are under active consideration, including offering a
range of additional services to business and residential customers.
“Consignia’s commitment to a Universal service at a uniform price remains
rock solid but we may also introduce an early morning delivery service for
business mail, as well as allow some customers to pick up their own mail or
provide them with an evening delivery service after they had returned from
work.
“The recent introduction of a new service allowing home shopping
customers the option of deliveries to their home in the evening or to their
nearest Post Office branch demonstrates Consignia’s determination to
innovate,” said Mr Sweetman.
“Electronic access to a wide range of Consignia’s services will also be
increased dramatically with the launch this autumn of a new web portal. This
will give the estimated 20 million on-line users of Royal Mail, Parcelforce
Worldwide and the Post Office Network a single point of contact.”
Mr Sweetman added that Consignia fully supported the introduction of fair
competition as it was convinced its products and services can develop, and
grow, in an increasingly competitive market place where “level playing field”
rules apply to all operators.
“That’s why Consignia continues to press for the introduction of
competition using the approach already accepted by the European Union, where
the boundaries of the reserved are reduced,” said Mr Sweetman.
http://www.consignia.com
UNS Contact: Consignia plc Group Communications, Tel: 020 7250 2468 (24 Hours) ENDS SMPA NEWS, 17th September 2001
