Royal Mail's Postcode Address File (PAF) – the electronic database containing every address in the UK – should be more widely available and managed by a separate business unit within Royal Mail, Postcomm said today.
Originally created by Royal Mail to improve the efficiency of its postal service, the PAF is now used by a wide variety of companies doing business with large numbers of people (insurance companies, banks, travel companies and utilities for example) and is extensively used by database companies to verify their address information.
Postcomm reviewed the management of the PAF after concerns that Royal Mail was planning to change the way it charged for the service. There were also concerns that Royal Mail might seek to exploit PAF unfairly, that maintenance was below par and that some companies received unduly preferential or discriminatory terms.
Published today as a consultation document, the review proposes that:
There is no change in Royal Mail's overall ownership of PAF but Royal Mail should create a separate, clearly ringfenced business unit exclusively responsible for managing the maintenance, development and distribution of PAF,
Royal Mail introduces objective and fair contractual arrangements with suppliers of address data to PAF (for example local authorities) to secure key information, and Royal Mail should pay the same price for its use of the PAF as any other similar user,
Royal Mail should formalise its consultation procedures and introduce a PAF Advisory Board,
Royal Mail designs a flexible and responsive licensing framework that promotes use of PAF and encourages accurate addressing,
Tighter regulatory controls are introduced with revenues based on a reasonable allocation of costs and greater transparency in finances, performance and decision making.
Nigel Stapleton, chairman of Postcomm said: “PAF has become an essential resource for UK businesses as well as a vital part of the UK postal industry. We think it is right that Royal Mail should continue to own and manage it, but in the fully competitive mail market we need to make sure it is not used by Royal Mail to discriminate against its competitors.”
Postcomm hopes that a cooperative approach with Royal Mail can resolve concerns about the current PAF management arrangements. “However, should this approach not prove successful, Postcomm will consult on alternate options including, if appropriate, enforcing compliance, reassessing the regulatory framework and options for greater separation,” the review says.
Postcomm's proposals for the future management of the PAF (pdf, 455KB), is published today. Responses to the consultation are requested by 12 May 2006.
More information on the review of the management of the PAF .
Printed copies will be available shortly from Postcomm at 6 Hercules Road, London SE1 7DB.
