Talks to seal changes in UK postal market
Royal Mail’s prospects will become clearer over the next few months as the postal market opens up to meaningful competition for the first time.
Talks between Royal Mail and its rival UK Mail will set a precedent on how much private sector operators will have to pay to use the postal network. The figure for this “access charging” will be crucial in determining how attractive the market is to new entrants.
Companies such as Deutsche Post and TPG, of the Netherlands, are keen to start delivering business mail in Britain. But Royal Mail will try to hold on to some of this lucrative trade to offset losses from its universal postal service.
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