Tag: TNT Mail

Royal Mail UK rival objects to 'unfair state aid'

TNT Mail has intensified its campaign against the state-owned postal operator’s request for Pounds 2bn of government money, writing to MPs to argue the funding would constitute “unfair state aid”. The lobbying comes as parallel negotiations by Royal Mail with the government, its sole shareholder, and Postcomm, its regulator, near their climax. Royal Mail’s board will meet today to discuss its response to Postcomm’s latest version of proposed four-year price controls, which will allow the cost of a first-class stamp to rise from 30p to at least 36p by 2010. TNT Mail yesterday accused Royal Mail of using “11th hour brinkmanship” in its attempts to leverage the maximum amount from both ministers and Postcomm. In a letter sent to the main opposition parties, as well as MPs on the trade and industry and public accounts committees, TNT Mail said Royal Mail was profitable and a Pounds 2bn investment would be an “inappropriate and inefficient use of taxpayers’ money”. It argued that the Pounds 2bn would also “greatly distort” the postal services market. “Fractions of one penny influence the buying decisions of business mailers who are responsible for 85 per cent of the UK’s mail,” the letter said.

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TNT seeks shop for GBP3m UK rebrand

TNT has called an agency review for a GBP3m rebrand of its business-to-business postal services. TNT is to merge its TNT Mail and Circular Distributors divisions under umbrella brand TNT Post. The decision is intended to drive awareness that it can deliver both addressed mail and unaddressed items such as door-drops. Royal Mail is the only other delivery company in the UK currently able to offer both services. The review is likely to take place at the end of this month, with the work set to be predominantly below-the-line, although this is subject to change. It will not cover TNT’s package delivery service, TNT Express.

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UK Royal Mail's rivals deliver new blows

The BBC, banking giants HSBC and HBOS and mobile phone groups O2 and Orange are set to give the Royal Mail the sack – the latest major companies to quit the state-owned postal operator over cost and service levels. The defections are likely to see more than two billion letters handled this year by private postal operators in contracts worth upwards of pounds 300 million. The BBC and O2 are close to taking their business to UK Mail, the postal arm of troubled quoted courier group Business Post. It is understood UK Mail is also vying with main rival TNT to win lucrative work for HSBC, Halifax group HBOS and Orange. UK Mail, TNT and the DHL arm of German giant Deutsche Post are aggressively targeting major corporates to take bulk postal contracts away from Royal Mail.

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UK Postal Services: Postal players deliver

Now that the postal system is in full deregulation, what services are on offer for UK businesses? asks Rob McLuhan. After 350 years Royal Mail has finally lost its stranglehold over the postal market, and judging from the number of firms that have applied for licences, it would seem that operators in the field have been waiting for this moment. In January the postal service became fully deregulated, ending Royal Mail’s monopoly and offering choice to businesses and consumers for the first time. This follows a partial deregulation in 2003 that permitted private operators to deliver business mail in batches of 4,000 or more. The long overdue change is already cutting costs and raising the quality of a service seen by many as indifferent. With savings on offer of about five per cent, and more in some cases, many bulk mailers have jumped at the chance to slash their postal bills for at least part of their needs.

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UK mailing issues: Go with the flow (transactional mail)

Mailing houses have formed a radical post-deregulation idea: produce and deliver direct and transactional mail under one roof, creating a single mail stream. If they can pull this off, the scope for marketing via bills and statements will be huge. It is only one month since the UK postal services market opened up fully to competition, so it is a little early to predict the eventual impact of liberalisation on the direct marketing industry. But one thing is certain: life will never be the same again for mailing houses. So long as there was a monopoly service provider, these suppliers were limited in how much value they could add to their services. Postage discounts can only be taken so far when the range of delivery options is restricted. In an open market, however, new opportunities have arisen. Many of these will flow upstream from the decisions taken by the new postal operators. In developing services and building market share, companies like DHL Global Mail, TNT Mail and UK Mail will need supplier partners to feed their distribution networks.
Already, the business development strategy of these operators could point to one major change. The new players have been targeting high- volume, regular transactional mailers – in other words, issuers of bills and statements. If their new clients also decide to move their direct mail activity away from Royal Mail, it is a bonus.

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