UK Postal Service Faces Competition by 2006

Share this content:
Consignia, the company that runs Royal Mail, may face full competition by 2006 under plans unveiled yesterday by industry regulators.


The Postal Services Commission, or Postcomm, the independent regulator, ruled that bulk business mail, which incorporates almost half the letters sent in Britain, could be handled by rival operators by April and that all deliveries would be open to competition within four years.


Postcomm has given Consignia and other organizations affected by the proposals until March 15 to comment. The regulator may revise its proposals in the light of these comments, but Consignia is required to implement the final reform package.


Consignia said that it would face "death by a thousand cuts" under the plan and revealed that it is already losing 1 million pounds a day on letter delivery.


Postcomm said Consignia's performance had deteriorated so badly that it faced little choice but to speed up the introduction of alternative operators.


"The current postal monopoly is clearly not providing its customers with the service they want and is failing to contain its costs," said chairman Graham Corbett. "We believe the most effective way to change this is for the company to face real competition."


The report also accuses Consignia of allowing costs to rise at a faster rate than its revenue growth. The U.K. government ended the Post Office's 350-year monopoly on letter delivery last year.


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