Ofcom has said it does not see competition from final-mile delivery firms as a threat to Royal Mail’s ability to continue to provide a universal postal service.
Following calls made earlier this year for the regulator to protect its final-mile delivery service from increased competition, Ofcom has concluded that Royal Mail's universal service is not currently under threat and will not impose regulatory conditions on its direct delivery competitors, including Whistl (formerly TNT Post).
It will, however, monitor the direct delivery market and plans to “intervene swiftly” if it believes competition is threatening the viability of the service.
Ofcom has also launched a broader review of the carrier’s ability to deliver a universal service, considering its efficiency and parcel delivery performance, as well as a consultation into new rules governing what the company can charge for ‘access mail’. This would see pricing variation based on the geographical area the delivery is being made in.
Proposed increases in what Royal Mail wanted to charge other carriers for final-mile delivery were suspended earlier this year as Ofcom investigated a complaint made by Whistl.
Royal Mail said in a statement: “Royal Mail is disappointed that Ofcom does not share the company's view on the threat that unfettered direct delivery poses to the future sustainability of the universal service.
The company will play its full part in Ofcom's broader review of Royal Mail's ability to deliver the universal service, including efficiency and parcels delivery. Royal Mail will also provide a detailed response to the consultation Ofcom has announced today concerning pricing of access mail.”
A Whistl spokesman said:“ Following the announcement of Ofcom’s consultation, which is detailed and complex, we will review the details in conjunction with our stakeholders. We will inform the market of our next steps, if any, if and when required.
“The day-to-day business of Whistl continues and the management team and colleagues’ hard work and dedication to our customers will continue as usual.”
