Plan to 'safeguard' rural postal service

THE government's communications watchdog has outlined measures to safeguard rural postal services.



Ofcom measures to ensure rural needs are met include maintaining a universal postal service and increased protection for rural post boxes.


Consumers would continue to benefit from the current service provided by Royal Mail, including six-day delivery, it said.


It would also retain the choice of a next-day priority delivery service, 'First Class', and a lower-priced three-day standard delivery service, 'Second Class';


Ofcom proposes new protection against the removal of post boxes in rural areas; and new guidance on how it would assess the potential impact of competition on the universal postal service.


The watchdog said it was outlining the steps that could be taken in the event that competition poses a threat to the sustainability of the postal service.


Claudio Pollack, Ofcom Consumer Group Director, said: "Consumers and businesses across the UK have told us that they place a high value on the universal postal service.


"Our decision not to change that service means the needs of postal users will continue to be met.


"We are also proposing new protections to ensure that everyone continues to have access to local post boxes, including those in rural communities.


"And crucially, we are reaffirming our commitment to ensure the universal postal service remains financially sustainable in the presence of competition".


Ofcom requires Royal Mail to provide a sufficient number of post boxes in appropriate locations to meet the needs of postal users.


The criteria setting out how Royal Mail must meet this obligation are covered by a regulatory condition which imposes certain requirements on the location and density of post boxes.


Currently, these criteria apply in only 61 out of the 121 postcode areas in the UK.


The postcodes excluded from this level of protection mostly cover rural areas. However, some major cities, such as Belfast, Edinburgh, Newcastle and Swansea, are also not covered.


To address this issue, Ofcom is proposing to extend protection for rural users of the post box network, as well as for those in urban areas not covered by the current protection rules.


It will do this by extending the protection across the whole of the UK.


The proposals mean there must be a post box within half a mile of at least 98% of 'delivery points' (usually the letter box of an address) nationally.


For the remaining 2% of delivery points, Royal Mail must provide sufficient post boxes or other means of access to the universal service to meet the reasonable needs of those users.


In line with its duty to protect the universal service, Ofcom has published guidance on its approach to 'end-to-end' competition in the postal sector.


This is where commercial postal operators collect, process and deliver mail directly to the recipient without the need to use Royal Mail's network.


The guidance sets out the circumstances under which Ofcom would undertake a review of the need to intervene in the market in relation to this form of competition.

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