Royal Mail's letters market monopoly comes to an end
The Royal Mail’s 350-year monopoly of the UK letters market comes to an end today. New rules now allow rival companies to compete for a share of the multi-million pound market. Postcomm, the postal services regulator, has so far granted long-term licences to 13 operators, who will compete with the Government-owned Royal Mail. Businesses may now abandon the Royal Mail for a cheaper or more flexible service, Postcomm said. The change will also improve the overall standard of service for individual customers – and could lead to the appearance of non-Royal Mail post boxes within a few years, Postcomm said.
The market has been in partial competition since 2003, when Postcomm allowed rival companies to offer mailing services to customers sending 4,000 items or more per mailing. Despite this, the Government-owned Royal Mail still has 97% of the overall postal market, Postcomm said. The changes, which come into force today, will give operators the chance to offer rival services regardless of how many items the user sends.
