Britain's Royal Mail seeks review of postal market regulation

Share this content:

Decreasing mail volumes and growing competition are placing "massive pressures" on the British postal service's ability to continue delivering a one-price-goes-anywhere service for every customer.

That was the Royal Mail's response to Postcomm's strategy review on the future of the British postal industry. The postal service has urged the postal regulator to let Royal Mail compete "freely and fairly" while ensuring everyone can continue to mail to Britain's 27 million addresses at uniform, affordable prices.

"The regulatory framework is no longer fit for today's environment where Royal Mail is competing against a growing number of rivals on a wide variety of mail services," Royal Mail chief executive Adam Crozier said in a statement yesterday.

"The best solution to the massive pressures building up against Royal Mail is for Postcomm to focus the Universal Service on stamped mail to ensure its future for everyone while lifting regulatory constraints on Royal Mail to allow it to compete fairly for business mail," he said.

Thanks to the new emphasis on business-mail competition, Royal Mail's competitors now handle 2.5 billion business letters a year, or about one letter in eight mailed in Britain. This also means that rivals now handle about 25 percent of bulk business mail in that country, Royal Mail said.

Increasing competition will make it harder for Royal Mail to continue delivering the Universal Service unless there are changes to the regulatory regime, the postal service said.

"The problem is compounded by the fact that Royal Mail is now losing money on the access price of 13 pence (25 cents) it receives for delivering mail collected and transported by rival companies," Royal Mail said in the statement.

Read more on this issue in deputy editor Melissa Campanelli's article in the March 5 issue of DM News' print edition.

close

Next Article in Direct Mail

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above