Tag: Royal Mail

Postcomm, the independent regulator for postal services, has called on Royal Mail to continue to raise its game and urged all operators to promote the strengths of mail versus other communications media, as it published the emerging themes from a far-reaching review of its regulatory strategy.

During the past year, Postcomm has asked for views on the future of postal services in the UK. The regulator will use these to help frame its regulatory strategy in the lead up to 2010 and beyond.

The principal theme of the review, on which Postcomm is now seeking feedback, is that mail operators must make the most of the opportunities presented by the changing mail market.

– Customers are benefiting from competition
– More innovation is needed in order to exploit the changing mail market
– Postcomm reaffirms its aim to move to less detailed regulation
– The universal service will be secured in a changing mail market

Royal Mail is pressing the industry regulator, Postcomm, to make radical changes to the universal service obligation, under which it must deliver mail to all the UK’s 27 million addresses for the same price. It wants business post taken out of the deal to allow it to charge less for franked mail.
Postcomm is conducting a wide-ranging strategic review of postal services as competitors battle Royal Mail for a share of the market and all mail providers face a growing challenge from new communications media such as email. The review covers competition, innovation, regulation, governance and the structure of the universal service.
Royal Mail’s proposals were revealed last Thursday 23rd August in Postcomm’s interim report on the review. The regulator, which has allowed changes to the universal service in the past, gives a cautious response to the plans. It acknowledges that removing business mail from the deal would help Royal Mail to be more commercially flexible. But it notes: “We believe that to manage some potential risks, a phased approach might be an attractive way forward.”
One concern is that Royal Mail’s proposals could harm small businesses unable to take advantage of competition in the bulk mail market. “We need to ensure the service remains aligned with changing customer needs and the economic costs of providing it,” Postcomm says. “The basic right to post a stamped letter anywhere in the UK for the same price will remain at the centre of the universal service.”