Tag: Royal Mail

Royal Mail response to Government review (UK)

Posted by | Dec 17, 2007 | |

Royal Mail is committed to maintaining a high quality, financially strong and sustainable postal service with the Universal Service Obligation at its heart, in line with the Postal Services Act and the EU’s Postal Services Directives.

The last few years have seen a huge change in the way in which people and businesses connect and communicate with each other and this is clearly having a major impact on the postal market.

We therefore welcome the decision by the Government to review the impact of liberalisation on UK postal services and trends in future markets development – and its likely impact on Royal Mail, alternative carriers and, most importantly, consumers.

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UK Ministers announce postal review

Posted by | Dec 17, 2007 | |

The Royal Mail’s 350-year monopoly ended at the start of 2006 when other licensed operators were given the right to collect and deliver mail.

Strike action by postal workers this summer damaged Royal Mail’s reputation.

Business Secretary John Hutton said retaining the universal postal service remained a “top priority”.

At the same, ministers announced that Royal Mail chairman Allan Leighton would have his contract extended by a year to March 2009.

Unions criticised Mr Leighton’s handling of a bitter pay dispute earlier this year which, although now resolved, is estimated to have cost Royal Mail more than GBP 200m.

There can be no doubt that the market has evolved with new technologies such as email and text messaging having a huge effect on the way we communicate

Although it has faced increased competition for two years, Royal Mail is still the dominant postal supplier in the UK, with a market share of more than 90 pct.

But the amount of mail it handles has fallen and social changes which have seen more people using email to communicate.

This is a crucial review which will help to shape the future of the postal sector

Terms of review

– Assess impact of market liberalisation
– Look at future market trends
– Consider how to maintain universal service

The review, led by former Ofcom deputy chairman Richard Hooper, will conclude next summer.

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Postcomm welcomes Government review of postal market (UK)

Posted by | Dec 17, 2007 | |

Postcomm, the independent regulator for postal services, welcomes the Government’s review of the UK postal services market, which was announced earlier today.

Postcomm looks forward to cooperating fully with the review which comes at a time of profound change for the market. The regulator’s official submission to the review will be published in due course, but is likely to consider:

– how to put Royal Mail in the best position to increase its efficiency and its flexibility to meet the changing needs of customers and to sustain a universal service which must evolve in the light of social and technological changes;
– how to ensure that new operators are able to offer customers a choice of innovative new services, on a level playing field with Royal Mail (including the same treatment under the VAT regime); and
– the need to allow the regulatory regime to evolve with the changing market and for Postcomm to step back wherever the market is effective in ensuring value for money and choice for customers.

Postcomm chairman Nigel Stapleton said:

“We are pleased the Government’s review will cover all aspects of the market and of Royal Mail’s structure and performance. The forward looking approach can ensure the public continues to benefit from an evolving universal service it values and the market develops to provide innovative, efficient and reliable services that meet the needs of all users.”

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Postcomm rejects Royal Mail's retail zonal pricing application (UK)

Posted by | Dec 14, 2007 | |

Postcomm has rejected Royal Mail’s application to charge large mailers – using products which are not part of the universal service – different prices depending on where in the UK their mail is delivered (Royal Mail calls this zonal pricing).

The reasons for this decision are broadly that Postcomm is not satisfied that the change would be introduced in a manner which avoids unreasonable changes to users, and because it involves discrimination.

Postcomm has made this brief announcement today to provide clarity to users of postal services and will publish full reasons for its decision in January 2008.

This decision does not mean that Postcomm is ruling out any future moves towards retail zonal pricing for products outside the universal service should Royal Mail propose an alternative approach that avoids the problems presented by the current application. Postcomm is generally supportive of pricing that is more reflective of costs.

Royal Mail’s ‘zonal pricing’ application did not include services paid for by stamps or those bulk mail products that are included within the definition of the universal service which must, under the Postal Services Act, remain priced at a uniform rate regardless of delivery zone across the country. It is open to Royal Mail to submit a new application if it can be framed to meet the relevant regulatory tests.

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