Countdown to competition: businesses want choice

Postcomm’s survey of business mailers reveals that 80 percent favour competition in the postal market, and that many would like to have seen competition introduced earlier than 1 January 2006. Greater customer choice, the potential to lower prices, and incentivising Royal Mail to improve performance were the main reasons given for favouring competition.

Commenting on the survey findings, Gregor McGregor, Chief Executive of Postwatch, said:

“Competition will put customers in the driving seat, ensuring that they can choose the service provider that is best suited to their needs. These findings confirm that businesses want competition in the UK postal market, and recognise the many benefits that ending Royal Mail’s monopoly will bring.

“The survey highlights that the challenge now is to ensure that all businesses are aware of the revolution taking place in the UK postal market, and that valued and needed parts of the postal service, for example the universal service obligation, will be preserved and strengthened by competition. With this information, businesses will then be able to take advantage of the opportunities that competition affords.”

Notes to Editors

1. For the last 350 years it has been a criminal offence for anyone other than Royal Mail to offer postal services to the general public. On 1 January 2006 the statutory monopoly will finally come to an end, and companies licensed by Postcomm, the postal regulator, will be free to provide competitive services.

2. Since 1 January 2003 bulk mail customers have been able to choose alternative postal operators. Bulk Mailers can be defined as those businesses that mail more than 4000 items at one time.

3. Examples of well-known businesses that have moved mailings to licensed operators include: Vodafone, Powergen, Royal Bank of Scotland and the Inland Revenue who use UK Mail. Waitrose, Barclay’s, Alliance & Leicester, BSkyB and Lloyd’s TSB who use TNT Mail and Tesco, which uses DHL Global Mail.