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Postcomm consults on Royal Mail's request for exemption (UK)

On 23 November 2007, Royal Mail applied for a Direction from Postcomm for exemption from certain aspects of Condition 7 for its Parts Express service. Specifically, Royal Mail requested exemption from the three month pre-notification requirements set out in Condition 7(2) and (3) and therefore by implication the publication requirements of Condition 7(4). In addition, Royal Mail requested exemption from the publication requirements of contracts won through competitive tenders that are set out in Condition 7(5) (b).

On 19 February 2008, Postcomm issued a consultation letter seeking views on Royal Mail’s request for exemption from certain requirements of Condition 7 for the Parts Express services and Postcomm’s initial assessment of this request.

It is important for Postcomm to get the views of stakeholders includnig other licensed postal operators, postal users, Postwatch, trade associations and other interested parties in the postal sector, and we will consider carefully these views in making our decision on Royal Mail’s request.

Notes for editors

The consultation will be open for four weeks and closes on 19 March 2008. Postcomm will then assess the responses received and meet interested parties to discuss the consultation as necessary. A final decision on this application is expected by the end of April 2008.

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Businesses CSR policies overlook the financially excluded (UK)

Post Office research has revealed that despite corporate social responsibility (CSR) becoming a key element of companies’ working practices, many are overlooking millions of customers by failing to offer a cash payment channel.

UK businesses are increasingly taking more responsibility for environmental issues by reducing their carbon footprint, as well as adopting more responsible attitudes to customers and suppliers to encourage sustainable social and economic growth.

But many companies offering basic services such as electricity, telephone, broadband and digital TV, and even gyms and health clubs, however, do not provide cash payment option.

With over 2.8 million UK adults (1.9 million households) without a bank or building society account and dependent on cash payment methods to pay their bills, the financially excluded population is unable to access a range of products and services which are available to those with bank accounts.

For example, among the UK’s top ten best selling domestic broadband providers, none currently offer a cash payment facility. In fact Post Office broadband, which launched last year, is the only broadband provider which offers a cash payment option.

The Post Office provides a range of bill payments services, enabling cash payments for telephone, cable TV, utilities, mail order, council tax, travel and insurance providers, to be made at any UK Post Office® branch. When it comes to making regular payments by cash or cheque the Post Office is the most popular location with over 50 per cent of all household bills paid at the Post Office.

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Uganda: Postal Services Need a Master Plan, Report

Uganda needs to extend the presence of its postal network at least to every sub county in the next 15 years as a way of bringing its vast underclass within reach of this vital communications service.

A report commissioned by the Uganda Communications Commission to examine the quality and reach of Uganda’s postal services and how to scale them up recommends the implementation of a 15-year master plan worth about USD 23.5 million.

According to the report 78 per cent of this money should be funnelled into capital investments and should be executed in three phases of five years each.

The report, produced by International Development Consultants, noted that Uganda has one of the lowest communications penetration rate in the world and, worse, 70 per cent of that is concentrated in urban centres which is again strange considering that the country has only 15 percent of its population in urban centres.

UCC Executive Director Patrick Masambu said the postal sub sector had not grown at the pace of mobile telecommunications largely because of multiple infrastructural hurdles and demand that has largely remained tepid.

Currently Uganda has one large postal operator (Posta Uganda) and 20 private courier services – DHL, Nation Couriers, Daks, FedEx etc – that ferry mail around the nation and overseas. But like the reality around the globe, Posta Uganda has for the last several years come under intense threat from the ubiquitous ICTs – Internet and cell phones – which have eaten into its revenues and almost reduced them to a trickle.

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Post Office Ltd announces plan for London

Post Office Ltd today (February 19) opened a six week local public consultation on its Area Plan for London. In line with the criteria and factors set by the Government in its response document, DTI The Post Office Network, Government Response to Public Consultation May 2007 (www.dti.gov.uk/consultations/page36024.html) the Area Plan proposes future provision of Post Office services through a network of 681 branches across the area, resulting in the closure of 169 branches.

Under the proposals more than 7 million London residents will either see no change to their nearest branch or will remain within one mile (by road distance) of an alternative branch.

The Government has already undertaken a 12-week national consultation before reaching a decision to reduce the UK wide network of Post Office branches by up to 2,500 from its current level of over 14,000 while continuing to provide funding to support a more sustainable network in the future. The proposals now published support the national accessibility criteria introduced by the Government.

Under the area plan proposals 89.4 per cent of the area’s population will see no change in their nearest branch. A further 10.6 per cent live less than one mile by road distance from the nearest alternative branch, with 5.9 per cent within half a mile.

Post Office Ltd has reached these proposals after engaging with and taking input from the independent consumer watchdog on postal services, Postwatch, and from local authorities within the area, and has considered factors relating to geography, the availability of local transport and alternative access to key Post Office services, local demographics and the impact on local economies.

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Norway Post’s and Itella’s information logistics services combined into a new joint venture in Norway

Norway Post and Itella are to establish a joint venture in Norway. After this transaction, Itella will own 51 percent and Norway Post 49 percent of Itella Information AS. Itella Information’s services in Norway, together with Norway Post’s services in the field of information logistics, will be combined into Itella Information AS. The company’s net sales will total approximately EUR 25 million (200 million NOK). The deal is conditional and requires the approval of the Competition Authorities.

The aim of the joint venture is to make Itella Information AS into the leading information logistics company in Norway. Itella Information provides services for the processing, management and delivery of information flows.

Norway Post’s current operations relating to information logistics will be transferred to the joint venture.

– This is part of the implementation of the Norway Post Group’s strategy, and is a proactive measure which will make the new joint venture a leading player in the industry in Norway, says Lars Tendal, Senior Vice President of the Post Division, Norway Post.

– This is the next step in the execution of Itella’s strategy in Northern Europe. In January, Itella bought the business operations of BusinessPoint S.A. in Poland. We believe that, through cooperation and common solutions, we will provide the strongest value proposal to our Norwegian customers, says Heikki Länsisyrjä, Senior Vice President, Itella Group.

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FedEx Express to provide substantial financial support and trade advice to fashion houses (UK)

FedEx Express will be providing substantial financial support and trade advice to the winner of a coveted award for up and coming fashion houses.

FedEx Express, which is an expert at providing logistic support to fashion and luxury brands, is seeking entrants for the New Exporter category of the UK Fashion Export Award 2008 with GBP 20,000 worth of financial and advisory support on offer to the winner.

Last year’s winner, Goat, which concentrates on timeless sophisticated pieces in the most luxurious yarns and fabrics, has already benefited from advice on service solutions and new target markets.

FedEx Express is sponsoring a salon presentation for Goat on March 18, which will be a further opportunity for Goat to increase their visibility. FedEx Express also provided broad ranging support for Goat during London Fashion Week (February 10 to 13).

Since Goat won the prize last year, FedEx Express has assisted the fashion house with automation, providing team training on key online tools with further training scheduled for the near future.

FedEx Express also advised and implemented a service solution for urgent sample delivery to Hong Kong and Europe and looked at the possibility of the United States as a new target market for Goat in the future.

Fashion houses with less than two years exporting experience can still apply for the 2008 award by filling in the application form.

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Parceline changes name to DPD and plans new EUR 75m hub

The UK parcel carrier Parceline is changing its name to DPD in order to offer all its domestic and international services under one brand. The GeoPost subsidiary is also planning a EUR 75 million new national hub in central England.

Parceline, which has been the British franchise partner of DPD since 1995, said the re-branding would clearly show it was part of an international group. The company, with 42 depots nationwide, focuses on B2B parcels services, and is a leading provider to the telecommunications, entertainment and retail sectors.

In a customer information leaflet, Parceline said the name change, which includes new uniforms, re-branded vehicles and a re-launched website, would take effect on March 28. Its products will also be re-branded to DPD 10:00, DPD 12:00, DPD Next Day and DPD Two Day for domestic deliveries, and to DPD Classic and DPD Express for international services.

Other GeoPost subsidiaries to have re-branded to DPD over the last two years include the operators in Benelux, Poland, Russia and the Baltic States. The DPD network has 500 depots across 38 countries, mostly in Europe, delivering more than two million parcels daily.

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USPS raises rates in effort to keep up with rising costs

The US Postal Service has announced several rate increases for its market-dominant products, which include First-Class Mail, Standard Mail, Periodicals, package services and special services. The increases are expected to take effect on May 12.
The USPS plans to increase prices for these products on an annual basis each May, according David Partenheimer, a USPS spokesman. “Smaller, predictable price changes will allow our business customers to better plan and budget for their mailings,” he said.
This will avoid the problems caused by the old pricing system, where several years went by without a price change and then some mailers were hit with a big increase.
According to the Postal Accountability and Enhancement Act, the average price increase per class can not exceed the Consumer Price Index. However, prices can vary within a class. As of January 16, the price cap for market-dominant products is 2.9 pct, according to the Postal Regulatory Commission. Overall, First-Class mail will increase by 2.889 pct, Standard Mail by 2.875 pct, Periodicals by 2.710pct, package services by 2.876 pct nd special services by 2.848 pct .
In the Standard Mail category, par¬cels and non-flat machinables will see the largest percentage cost increase at 9.66 pct. Standard Mail letters will increase by 3.39 pct; flats by 0.86 pct; high density and saturation letters by 1.66 pct ; high density and saturation flats and parcels by 2.09 pct and carrier route letters, flats and parcels by 2.99 pct .

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