Postcomm challenged by PPA over Presstream

by Daniel Farey-Jones, Brand Republic 06-Dec-05, 07:00

LONDON – Postcomm's decision to remove Presstream, Royal Mail's magazine delivery service, from its price control regime has been challenged by magazine trade body, the Periodical Publishers Association.

The PPA is protesting that its evidence shows that Royal Mail faces no real competition in magazine delivery. It is concerned that the lack of exterior control over Presstream pricing will lead to significant price increases for publishers, putting at risk growth and innovation within the sector.

Postcomm wants to lift Royal Mail's obligation to provide Presstream as a universal service from April 2006, meaning the service will be exempt from the price controls.

Keith Jones, chairman of the PPA postal strategy group and chief executive of Reed Business Information, said: "The issues we face regarding pricing in proportion pale into insignificance compared to the threat from removing Presstream. Open competition is only significant when there are real competitors out there."

Postcomm is expected to announce the terms of Royal Mail's price control for 2006-2010 on Wednesday.

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