This paper concerns with the problems underlying the main business of the Royal Mail Group (“RMG”)— delivery of letter mail — and whether the regulatory regime of the Postal Services Commission (“Postcomm”) is making things better or worse.
P:LIBRARYPostalPenny on the post.doc
Hainault, Essex-based Roebuck Transport withdrew from the Fortec network this week,
Read MoreRoyal Mail is preparing to outsource its nationwide IT operations in a deal worth up to pounds 1.5bn. The company is expected this week to sign a 10-year agreement with a consortium including CSC, the American computer services group, and BT, the telecoms giant. The deal involves the transfer of 2,000 jobs out of the Royal Mail group. The move is part of Royal Mail’s drive to focus on its core operations and to slash operating costs. The group has already outsourced building operations and maintenance as well as employee health services.
Read MoreThe first phase of deregulation intended to open up 30 per cent of Royal Mail’s letter market to competition is under way. While it is far too early to say how much impact this has had, a question that does need addressing is how direct mailers are going to respond. Will they be looking to switch to other postal carriers? Will they be able to adopt a more flexible approach to their mailing schedules? And what will be the best way to buy in this new, competitive environment? A number of mailing houses remain wary of new postal carriers entering the market, and from what they have seen so far, cannot see them persuading mailers to switch from Royal Mail.
Read MoreUlster’s struggling rural post offices were yesterday given a cash boost of GBP750,000. NIO Minister Des Browne announced the funding after a News Letter campaign highlighted how postmasters in rural communities were fighting for survival. Mr Browne said it was important people in the most disadvantaged urban communities continue to have access to the vital services provided by post offices. Consumer watchdog, Postwatch Northern Ireland, said the funding was “a much needed boost for post offices in deprived areas”.
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