Ofcom bids to safeguard the UK postal industry
Mar 28 2012, 12:57 PM
Leaders at Ofcom believe that new reforms to the way it monitors the UK's postal industry will ultimately safeguard the great British institution.
The postal service faces numerous challenges due to the emergence of new technology, as many businesses now use email, text messaging and online services in order to transport documents. Ofcom felt the time was right to introduce sweeping changes that will essentially give the Royal Mail more power to set its own prices.
Group director of competition at the industry regulator Stuart McIntosh believes the new framework is necessary.
"Ofcom's decisions are designed to safeguard the UK's postal service, ensuring it is sustainable, affordable and high-quality, to the end of the decade and beyond," he remarked.
Despite receiving greater commercial freedom under the terms of the new framework, Ofcom has still insisted on a number of stipulations that the Royal Mail must adhere to, including a cap on the cost of second class stamps and parcel deliveries.
The body will continue to monitor the company's performance and still has the power to intervene if it feels the Royal Mail is not providing a fair service.
Britain's postal service is still important to address management specialists, who rely on the network to deliver important marketing promotions to potential clients or documents to existing customers.
Chief executive officer at the Royal Mail Moya Greene insisted that price hikes are being made in order to sustain current levels of service, as the organisation faces increasing pressure from e-substitution.
The company has seen its workload increase enormously in the past decade, as postal workers now deliver to 29 million properties throughout the UK, compared with 27 million in 2003.
"Royal Mail provides one of the highest quality postal services in Europe for amongst the lowest prices for both consumers and business," she commented.