Royal Mail slammed by regulator for failing to embrace change

by Ed Kemp Marketing 28-Mar-08, 16:51

LONDON - Royal Mail has come under fire from independent postal services regulator Postcomm for failing to embrace structural changes in the mail market, including the rise of email and the internet.

The regulator argues that Royal Mail must undertake ‘fundamental reforms if it is to have a long-term sustainable future and the needs of all users of mail are to be met'. In its report, Postcomm claims that Royal Mail lags in terms of investment, efficiency and product innovation.

‘Royal Mail's problems are a lot more deep-rooted than having to deal with modest amounts of mail competition and regulation,' said Postcomm chairman Nigel Stapleton. 'Royal Mail is experiencing some fundamental changes in how senders are using mail following the rapid growth in the use of email, text messages and the internet for communications and marketing.'

However, in its first submission to an independent panel reviewing the postal services market, Postcomm also notes the positive impact for customers since the addressed-letters market was opened up to competition more than two years ago. Among the positives, Postcomm congratulations Royal Mail for improving service quality levels among residential mail users.

The regulator will make a second submission in early May, in which it will explain its proposals for addressing these problems and securing a successful future for the postal services market.