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Express Dairies Gets Postcomm License

Postcomm, the independent postal services regulator in the United Kingdom, yesterday granted its third long term license allowing Express Ltd. to use its milk delivery network to provide postal services to business customers.

The new license, which will run a minimum of seven years, replaces an interim license granted last summer.

Two other long-term licenses were granted earlier this year allowing postal operators and mailing companies to carry bulk mail throughout the UK.

The licenses went to TPG Post UK Limited, a subsidiary of Dutch postal operator Royal TPG Post BV, and Hays Commercial Services Limited, a UK-based mailing services firm. The licenses let TPG and Hays carry bulk mail and provide consolidation, enhanced document exchange and tracked business-to-business services.

The licenses are part of a three-stage plan by Postcomm to open up the UK’s postal service to competition.

The first stage, which runs through March 2005, involves mailings with at least 4,000 pieces. Such mailings make up 40 percent of Royal Mail's domestic letter volume and 30 percent of its letter revenue.

From March 2005 to April 2007, the size of mailings open to competition will be lowered. Competition for all mailings is slated for April 2007.

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