Tag: UK Mail

UK postal firms warn of risk in rushing to open up the mail

Posted by | Sep 21, 2004 | |

Postal operators warned yesterday that the decision to end Royal Mail’s letters monopoly 15 months earlier than planned could result in a “cowboys’ charter” and damage attempts to introduce more competition into the market. Royal Mail said it welcomed the earlier opening of the market provided the “handcuffs” which prevent it from making an acceptable return on revenues came off. Adam Crozier, its chief executive, also said there had to be careful licensing of new entrants to avoid a “free-for-all with customers left to find their way among potentially dozens of rivals with varying quality of service”. Existing private mail businesses gave the proposals a guarded welcome but also warned that the liberalisation of the market needed to be handled carefully or it could damage consumer confidence and ultimately strengthen Royal Mail’s stranglehold. Britain’s longest-established private mail business, DX Network Services was one of those to express reservations. Guy Buswell, the managing director of UK Mail, was also apprehensive.

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UK Royal Mail facing VAT showdown

Posted by | Sep 12, 2004 | |

Five private mail companies are preparing to take the Treasury to court over its pledge to preserve Royal Mail’s special VAT-free status. TNT, the Dutch courier company, will front the challenge, which could end up in the European Court of Justice. TNT is supported by Hays, Deutsche Post, UK Mail and Express Dairies, which is also looking to expand into post deliveries. The companies believe they are unable to compete with the state-owned Royal Mail on equal terms because they must charge 17.5 per cent VAT on deliveries. “This creates an uneven playing field,” said Angus Russell, TNT’s legal adviser. “We must bite the bullet and challenge this. TNT will take the lead.”

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Call to scrap Isle of Man Post monopoly

Posted by | Jul 26, 2004 | |

One of the UK’s largest express delivery companies is petitioning the Manx government to remove the monopoly currently held by Isle of Man Post.

Business Post, the fourth-largest operator in the UK, has secured a licence from UK postal regulator Postcomm to compete with the Royal Mail. Now it is hoping to do the same on the Island by persuading the Department of Trade and Industry to allow it access to the entire postal market. Current legislation prohibits any other company from collecting and distributing individual items of mail less than GBP4 in value. This means that the majority of letters posted are dealt with by IoM Post, including business mail.

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UK Mail bullish over business post gains

Posted by | Jul 16, 2004 | |

UK Mail predicts it will be handling nearly half a million business letters a day by the end of next month, as new customers join existing clients PowerGen and mobile phone network Singlepoint in switching their services to the private postal operator.

The company, which claims it will generate up to GBP15m worth of revenues this year from a standing start two months ago, revealed it had secured the PowerGen business this week. It is expected to handle up to 35 million items for the utility giant, mainly bills and marketing literature. UK Mail is also understood to be working for Singlepoint, which was bought by Vodafone last year, although it declined to confirm the appointment. In addition, the postal operator is believed to be targeting government agencies.

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Postcomm publishes observations of Royal Mail’s agreement with UK Mail

Posted by | Mar 31, 2004 | |

Postcomm has published its observations on the access agreement, under which Royal Mail will deliver mail for UK Mail Ltd.

The document shows that the average prices agreed between Royal Mail and UK Mail were very close to those which Postcomm would have proposed, and are within the margin of judgement inherent in such calculations. Prices charged by Royal Mail for this “final mile” service range from 13p for a letter weighing up to 60g to around £3.65 for an item weighing 2kg.

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