Tag: Royal Mail

Small shops in revolt against UK Post Office

Posted by | Jan 15, 2005 | |

The Post Office was accused yesterday of undermining its own network of sub-post offices with demands for huge levies and restrictions on the services branches can offer. Convenience store owners, many of which have recently taken over local post office services, said the demands by the state enterprise that they pay large commissions from their other commercial activities to the Post Office were a restrictive practice that could drive many to close the sub-post offices in their shops. Demands by the Post Office for bigger payments from convenience store owners were also discouraging independent shops and chains of convenience store owners from taking over post office services, depriving many areas of the country of a branch. Store owners said the move could lead to more closures – beyond the 2,500 already shut down or earmarked for closure – should only a few incentives remain for them to step in and take over the local franchise.

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Small fanfare for UK Royal Mail’s drop in B2B price

Posted by | Jan 10, 2005 | |

There was a luke-warm reaction to news that Royal Mail is to reduce its prices for business mailers. The move is part of the postal service’s plan to stave off the growing competition for its huge share of the B2B market. From April this year the cost of a first-class stamp will rise from 28p to 30p. Business mailers will receive a 1p discount on the 30p price if their mail is franked or uses a PPI (Printed Postage Impression) and weighs less than 60g. Discounts range from 3p to 8p for heavier items. “There are some reductions and small increases, which are likely to behave as a balancing act,” said David Robottom, director of postal affairs and industry development at the DMA. “Royal Mail is making its prices relate more to its cost, which we support,” he added. “We welcome any reduction in price, as long as the service improves.”

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UK’s Post Office targets BT with new phone service

Posted by | Jan 10, 2005 | |

Royal Mail launched a home telephone service in a bid to steal customers from BT Group, the country’s former telecoms monopoly. Royal Mail said it hoped to sign up 1m customers, or about 5 per cent of BT’s residential business, to its own HomePhone service by 2008. The company is only the latest entrant into the UK’s domestic fixed-line market where BT’s dominance has been under attack in recent years from a string of new competitors such as Carphone Warehouse and Tele2.

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Postal watchdog angers UK Royal Mail boss with split suggestion

Posted by | Jan 9, 2005 | |

Britain’s postal watchdog is pressing for the carve-up of Royal Mail to encourage fresh competition into the market. Under Postwatch’s proposals, Royal Mail would be divided into two companies, with separate chief executives. The consumer watchdog has taken its cue from the gas industry, which has seen the creation of separate businesses owning pipes and billing customers. Under its plans for Royal Mail, Postwatch would like to see the state- owned company’s marketing operations split from the pipeline business, which includes sorting and delivery. It argues that splitting Royal Mail in two would ensure that the fee rivals pay Royal Mail to access its sorting and delivery services would exclude marketing costs. “This is not an anti-Royal Mail move, it is pro-competition,” a Postwatch spokesman said. “We have got to get transparency at Royal Mail, to know that there is no cross-subsidy between the businesses.” The watchdog’s proposals are set to increase tensions between the Royal Mail chairman, Allan Leighton, and the Postwatch chairman, Peter Carr.

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