Tag: Domestic

The Slimming Down Of Royal Mail

Posted by | Jan 17, 2008 | |

As Postcomm examines the way in which deregulation of postal services in the UK is progressing, one proposal being considered is the splitting of Royal Mail’s collection and delivery service. All those involved in the postal business are being asked for their opinion in order that Postcomm can put together a workable plan for the next phase of deregulation.

Royal Mail still holds the monopoly on postal delivery in the UK and it seems likely that this will remain so in the future, but Postcomm is trying to ensure that competitors have equal access to Royal Mail’s delivery network wand at the same time reduce the amount of red tape which Royal Mail is currently governed by.

Certainly the postal market will continue to evolve – and not without problems either. Last year saw a bitter dispute between Royal Mail and its workforce over plans to restructure working hours, pay and conditions to enable it to compete and whilst some degree of victory was heralded by both sides, the changes at Royal Mail, like the entire postal market, are probably the tip of the iceberg.

Perhaps the concept of splitting Royal Mail would push it further towards privatisation but for the moment, there seems little appetite for a complete sell-off and all previous attempts to do so have been scuppered by back benchers and the unions. It would just upset too many people.

That said, the gradual changes are being seen by many as a stealth approach to a sell-off, gradually bringing Royal Mail to a position where there is no other way forward. At the moment, Royal Mail is a state owned postal service chaired by a man with commercial experience and radical ideas, but so far, Allan Leighton’s ideas to modernise the business are to some extent, being held back by regulation and a union-entrenched workforce. However, the gradual erosion of Royal Mail’s monopoly and with Postcomm now lowering the licence fee for smaller operators to a mere fifty quid, the CWU will find itself with less and less to hang on to.

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Business Post has 10 pct of UK mail

Posted by | Jan 17, 2008 | |

Business Post, the parcel and mail delivery group, is now handling one in 10 mail items posted in the UK after winning contracts to deal with letters and packages for large business mailers.
MBNA, the credit card company, and Norwich Union, Britain’s largest insurer, were among new customers for the group’s UK Mail postal operation, contributing to an increase in its share of the retail mail market from 7.5 per cent to 10 per cent in the last quarter of 2007.
UK Mail collects and sorts post from bulk mailers, before handing it over to Royal Mail for delivery over “the final mile” to homes and businesses around the country. Other customers include BBC TV Licensing, Carphone Warehouse, Royal Bank of Scotland and the Department for Work and Pensions.
Mail revenues during the three months to December 31 were up 60 per cent on the previous year, the group said in an interim management statement following the close of its third quarter.
The parcels arm also grew over the quarter with underlying revenues up 6 per cent. This contrasted with the experience at Rentokil Initial, which blamed falling volumes at its City Link parcel delivery service when it issued a profits warning in December.
Business Post shares have fallen from a high of 514p in June, closing on Wednesday at 250½p, up 12p.
The group will report results for the year to March 31 on May 21.

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Postcomm consults on complaint handling and redress schemes for licensed postal operators (UK)

Posted by | Jan 17, 2008 | |

Postcomm has today launched consultations on:
– Complaint handling: Complaint handling standards for licensed postal operators. A consultation document and
– Redress schemes for licensed postal operators: Criteria for the approval of redress schemes in postal services
Under the Consumers, Estate Agents and Redress Act (“the CEAR Act”, given Royal Assent on 19 July 2007), Postcomm has a statutory duty to make regulations on complaint handling standards that would apply to all licensed operators. The act also allows for the Secretary of State for Business, Enterprise and Regulatory Reform to require regulated postal operators to belong to a Postcomm-approved redress scheme.
Today’s documents seek views on Postcomm’s proposals:
– for complaint handling standards, and
– on criteria for approval of redress schemes in postal services.

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USPS announces two new shipping initiatives (U.S.)

Posted by | Jan 17, 2008 | |

The U.S. Postal Service announced today that its Board of Governors approved two new initiatives to grow its shipping business and revenue. A new, larger Priority Mail Flat-Rate Box enables customers to ship 50 percent more than with the current box. It will be offered at a discount to overseas military addresses, a postal first for the armed forces. The agency also announced a new Sunday and holiday delivery price for Express Mail. Customers can begin using the new boxes March 3, the same day the premium takes effect.
The current flat-rate box, which gives customers a single, predetermined rate regardless of the weight or delivery zone, was introduced in November 2004. The new, larger box extends the agency’s successful flat-rate offerings, providing more choices for small businesses and consumers.
The new Priority Mail Large Flat-Rate Box (12″ x 12″ x 5½”) can be used for both domestic and international shipments. This extends the flat-rate price and ease-of-use benefits to international shippers. There is also a 5 percent online discount.
All Postal Service Priority and Express Mail packages and envelopes are environmentally friendly, exceeding the highest standards for recyclability.
The Governors also approved a USD 12.50 premium for Sunday and holiday Express Mail delivery. The premium, equal to competitor surcharges for Saturday delivery, reflects the unique delivery option the Postal Service provides on Sundays. As an alternative to Sunday, customers can choose Monday delivery at the standard Express Mail price.

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Postcomm announces simplification of licensing framework (UK)

Posted by | Jan 16, 2008 | |

Postcomm has announced changes that will simplify procedures for licensing non-universal service operators. (The universal service is the geographically uniform postal service that is provided by Royal Mail.)

In 2007, Postcomm responded to suggestions that its current licensing arrangements did not go far enough in facilitating market entry for some small and medium sized potential mail operators. A consultation was launched on proposals to move to less prescriptive licensing for those seeking to enter the postal services market. Several of these amendments were meant to eliminate unnecessary regulation, thus helping to encourage competition to the benefit of all customers.

Amendment of the 2006 licensing framework:
– a reduction in application fees from GBP 1,000 to GBP 50, which it is hoped will help encourage small businesses to enter the market, and
– the removal of the licence requirement on all licensees to have guarantees or contractual arrangements in place to ensure the delivery of mail if an operator fails so that, in future, other operators can respond directly to what the market demands, rather than to regulatory requirements.
– Postcomm believes that effective competition can better protect the interests of postal customers than regulation and is aiming to ensure that its licensing rules support the developing competitive market. Nothing being proposed will affect Postcomm’s ability to enforce licence conditions or lead to any substantial reduction in protection for mail customers.

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