Sony Pixel Power calrec Sony

Delivering postal users' needs in a digital age

26/11/2020

Delivering postal users' needs in a digital age Add to Your Pages

26 November 2020

Royal Mail needs to become more efficient and modernise its parcel network

New Ofcom research shines a light on changing attitudes to postal services

Reducing letter deliveries to five days a week would still meet the needs of nearly all people and businesses

But changing delivery requirements alone would not sustain the universal service in the long term

Ofcom is calling on Royal Mail to modernise its network and become more efficient, in order to sustain the universal service and keep pace with postal users' changing needs.

The postal market has changed dramatically in recent years. The number of letters people send and receive has fallen by around 5% each year since 2015, as people increasingly rely on email and other online communications.

Growth in online shopping has seen overall parcel volumes increase at a rate of around 10% per year since 2015. And these trends seem to have accelerated during the coronavirus pandemic, with Royal Mail reporting a 31% increase in its UK parcel volumes between April and September this year.

While the pandemic has made 2020 a particularly challenging year for Royal Mail, the issues facing the company due to the changing market and consumer behaviour were apparent before the pandemic started to have an impact.

Parcel delivery: Royal Mail must modernise and become more efficientOfcom's annual monitoring report on the postal market sets out data and trends within the postal sector, and examines Royal Mail's performance. In 2019/20, 2.8 billion parcels were sent and received in the UK one billion more than in 2013 in a market now worth over £10bn in revenues.

Our analysis of Royal Mail's efficiency shows that costs in the part of the business responsible for the universal service increased last year. The company failed to make efficiency gains or meet the targets it set itself for improving productivity.

Unless Royal Mail can modernise its network to adapt to parcel customers' changing needs, and operate more efficiently, the sustainability of the universal service could be at risk in the longer term.

Letter delivery: does the universal service reflect users' needs?Under legislation, the universal postal service requires Royal Mail to deliver letters six days a week (Monday to Saturday) and parcels five days a week (Monday to Friday) to every address in the UK, at a uniform price.

With the market continuing to change rapidly, Ofcom has carried out a comprehensive review of the needs of postal users across the UK, to see if the delivery requirements Royal Mail has to meet still reflect what people and businesses need today.[1]

We have asked people and businesses how they feel about a range of hypothetical changes to the universal service, to find out what would meet their needs. Any changes to the universal service's minimum requirements could only be made by Government and Parliament, but the findings give an insight into how people's attitudes to postal services have evolved.[2]

Our research found that the current six-day-a-week letter delivery requirement meets the needs of 98% of residential users and 97% of small and medium businesses (SMEs) in the UK. Reducing this to five days a week, but leaving all other elements of the service unchanged, would still meet the needs of 97% of residential and SME users.[3]

This suggests that reducing the letter deliveries requirement to five days a week would reflect postal users' reasonable needs. It would potentially allow Royal Mail to make net cost savings of around £125-225m per year.

However, Royal Mail continues to face significant financial challenges and this saving alone would not be sufficient in itself to ensure the longer-term sustainability of the universal service.

Lindsey Fussell, Ofcom's Networks and Communications Group Director, said: Our research suggests that people's needs would still be met if letter deliveries were reduced from six days a week to five.

It would ultimately be for Parliament to decide whether this change is needed. However, Royal Mail must still modernise and become more efficient, to keep pace with customers' changing needs.

Next stepsWe have researched whether the minimum requirements of the universal service reflect the reasonable needs of postal users. It would be for the UK Government to determine whether any changes are needed to these minimum requirements and to bring any proposals before Parliament.

Separately, we are reviewing the future regulatory framework for post. This will consider issues affecting the broader postal sector, as people's reliance on parcels continues to grow. For example, we will look at continuing the requirements for Royal Mail to provide wholesale access to its network, and whether extra consumer protections are required in the parcels market. We will consult on these issues next year and conclude this review in 2022.

NOTES TO EDITORS

Nationally representative samples of 4,596 UK adults and 971 businesses were surveyed at the end of 2019. This was supplemented by discussion groups across the UK. We subsequently surveyed 2,366 adults in summer 2020 to assess how far users' views may have changed as a result of the Covid-19 pandemic. Our review has focused on the minimum requirements of the universal service, but we also asked for people's views on hypothetical changes to other features. We carried out our last review of postal users' needs in 2012/13.

The Postal Services Act 2011 sets out the minimum requirements of the universal postal service and the need for the provision of that service to be financially sustainable and efficient. Ofcom can specify other features of the universal service, such as requiring the choice of a first-class and second-class serv
LINK: https://www.ofcom.org.uk/__search/s/redirect?collection=web&url=https:...
See more stories from ofcom

Most recent headlines

05/01/2027

Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be demoed at CES 2026

Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...

09/11/2026

Reinvigorated AES Show Nashville Debuts in Music City

In a new home, the show had its traditional focus on music production, but broadcast themes received significant emphasis The Audio Engineering Society (AES) c...

09/11/2026

Sportel Panel Recap: How AI Is Impacting Everything Private Equity to Broadcasters, Streamers, Federations

Content creation and rights, YouTube archive, production workflows, investment, ...

09/11/2026

Building the REMI Hub of Today (and Tomorrow): Broadcasters and Vendors Share Their Strategies

Industry leaders from Prime Video, NASCAR, FOX Sports, and more discuss the tech...

09/11/2026

SMT Provides Broadcast Graphics and Shot Data for Inaugural WTGL Season

SMT (SportsMEDIA Technology) is delivering on-air graphics and shot data for the Women's Team Golf League (WTGL), which made its debut Sunday, Nov. 8, at So...

09/11/2026

BKB Names Michael Ridout Managing Director, UK

BKB Bare Knuckle Boxing has appointed Michael Ridout Managing Director, UK. He will lead BKB's operations in the United Kingdom and take on wider operationa...

09/11/2026

SMPTE Media Technology Summit 2026 Set for Nov. 16-19 in Pasadena

SMPTE's Media Technology Summit (MTS2026) takes place Nov. 16-19 at the Pasadena Convention Center. The schedule: Media Tech Business Forum (Monday, Nov. 1...

09/11/2026

AES Show Nashville 2026 Draws Nearly 3,000 Registrations

The Audio Engineering Society (AES) held AES Show Nashville 2026 Oct. 30-Nov. 1 at the Gaylord Opryland Resort & Convention Center. AES reports nearly 3,000 reg...

09/11/2026

Devoncroft Partners To Present Enterprise Video Survey Findings at Silicon Valley Video Summit

Analyst Josh Stinehour will share results Jan. 26 in Mountain View, Calif. Devo...

09/11/2026

Behind The Mic: Tirico Misses SNF Due to Health Issue; Wilbon Takes Leave of Absence From PTI

Behind The Mic provides a roundup of recent news regarding on-air talent, includ...

09/11/2026

Cleveland Cavaliers Boost In-Venue Energy With The Famous Group's Virtual Camera Tech

Permanent mixed-reality activation debuted against the Brooklyn Nets at Rocket A...

09/11/2026

The College Football Playoff Will Expand to 24 Teams in 2027; ESPN Secures Rights to 12 Additional Games

The new agreement brings the Playoff to 23 games, including 16 on-campus matchup...

09/11/2026

SMT Supports All Three NASCAR National Series Championship Broadcasts at Homestead-Miami Speedway

SMT provided production technology and graphics support for all three NASCAR nat...

09/11/2026

Vertikal from Native Instruments

Captures Nils Frahms upright concert grand In their latest collaboration with composer Nils Frahm, Native Instruments have captured a vertical concert grand...

09/11/2026

Sonic Days 2026

18-19 November 2026, Sonic College, UC SYD, Kolding, Denmark Sonic College have announced that their annual Sonic Days conference is set to return to Koldin...

09/11/2026

Sonuscore release The Score Elements

Cinematic scoring tool gains free entry-level version Sonuscore's Elements range offers a free entry point into the company's line-up of scoring too...

09/11/2026

Rohde & Schwarz and ZES ZIMMER present test solutions for power systems and automation at SPS 2026

Rohde & Schwarz and ZES ZIMMER present test solutions for power systems and auto...

09/11/2026

Hercule: further casting unveiled for forthcoming series with Edward Bluemel

The BBC and BritBox have announced further casting for the forthcoming six-part series Hercule from Mammoth Screen and Agatha Christie Limited for the BBC and B...

09/11/2026

Sonys Shotgun Mic Deployed in Drifter' Shoot

Share Copy link Facebook X Linkedin Bluesky Email...

09/11/2026

Fox Closes Roku Acquisition

Share {alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...

09/11/2026

Indianapolis TV Stations Return to DirecTV After Lengthy Absence

Share Copy link Facebook X Linkedin Bluesky Email...

09/11/2026

Vizrt Completes Proof-of-Concept Integration With Story Object Model

Share Copy link Facebook X Linkedin Bluesky Email...

09/11/2026

Broadcast Dominated Midterms Coverage

Share Copy link Facebook X Linkedin Bluesky Email...

09/11/2026

Berklee's Singers Showcase Celebrates Whitney Houston's Music and Her Gospel Roots

Berklee's Singers Showcase Celebrates Whitney Houston's Music and Her Go...

09/11/2026

Life in the fast lane

Monday 9 November 2026 Life in the fast laneTurn on cookies to view this content. Go to Privacy options and select Accept All'. Privacy options From Tik...

09/11/2026

Cathy Newman to revist defining moments in recent history with the people who lived through them in new Sky News podcast

Monday 9 November 2026 Cathy Newman to revist defining moments in recent histor...

09/11/2026

Sky VIP unwraps over one million free rewards for customers this Christmas

Monday 9 November 2026 Sky VIP unwraps over one million free rewards for customers this Christmas This Christmas, Sky VIP is giving away more than one million...

09/11/2026

Measuring what matters to achieve climate targets

When is a city green' and when is it a big polluter? As we approach COP 31, when country leaders from around the world meet to negotiate climate policies a...

09/11/2026

Focusrite Control 2 iOS and Android apps now support Scarlett 3rd Gen, Clarett+, and more

Focusrite Control 2 iOS and Android apps now support Scarlett 3rd Gen, Clarett ,...

09/11/2026

NVIDIA Announces New Planned Investments in Korean Startups at the MSIT-NVIDIA AI Startup Partnership Forum

Korea's Ministry of Science and ICT and NVIDIA hosted the MSIT-NVIDIA AI Sta...

09/11/2026

Practice Makes Precise: At CoRL, NVIDIA and Partners Reveal How Robots Rehearse Delicate Work in Simulation

Simulation, which has long been the proving ground for robots learning to walk, ...

08/11/2026

Acon Digital release Restoration Suite 3

Updated modules & new Analyze function Acon Digital's all-in-one restoration plug-in has just been updated, and now boasts an Analyze button that allows...

08/11/2026

AnalogX launch Genesis

Run analogue gear emulations on your GPU AnalogX have released a new GPU-powered mixing ecosystem that's been designed to change how users handle analog...

08/11/2026

COW Jobs: Set and Production Design Expert - Remote

COW Jobs: Set and Production Design Expert - Remote Brie Clayton November 8, 2026 0 Comments Set and Production Design Expert (Remote, worldwide) No...

08/11/2026

NVIDIA Dynamo Recipes Bring Korea's Leading Open Models to Production

NVIDIA is releasing Dynamo-optimized deployment recipes for Korea's leading open models: A.X K2 from SK Telecom, K-EXAONE 2.0 from LG AI Research, Solar Ope...

08/11/2026

From Chips to Skills, NVIDIA and Korea Expand Sovereign AI Collaboration

NVIDIA and Korea's Ministry of Science and ICT (MSIT) are expanding their collaboration across the country's sovereign AI ecosystem, from AI semiconduct...

08/11/2026

Korea's AI Ecosystem Advances and Secures Agentic AI With NVIDIA

As AI agents take on more work, they need capable open models and security that advances alongside them. Hyundai Motor Group is exploring NVIDIA NemoClaw bluep...

08/11/2026

Korea Advances Physical AI Across Industries With NVIDIA

Tapping into the country's strengths in manufacturing and engineering, NVIDIA is helping advance Korea's physical AI ecosystem. The country's indu...

07/11/2026

Tracktion Waveform Free 14.1 now available

Mix Analysis, improved Render window & new bundled instrument The free version of Tracktion's DAW software has recently received an update that introduc...

07/11/2026

NFVF CALL FOR MARKET READINESS PROGRAMME FOR SOUTH AFRICAN GAMING STUDIOS

The National Film and Video Foundation (NFVF) is a statutory body established to promote and develop the South African film and video industry, including animat...

07/11/2026

Nielsen: 31.2 Million Viewers Watch 2026 U.S. Midterm Election Coverage

NEW YORK - November 5, 2026 - An estimated 31.2 million people watched primetime coverage of the 2026 U.S. midterm elections on Tuesday, November 3, according t...

07/11/2026

RCI Custom Selects Neutrik as Primary Source for Connectors

Share Copy link Facebook X Linkedin Bluesky Email...

07/11/2026

Audio Engineer Rachel Saldivar Deploys Sony Shotgun Mic for Drifter' Shoot

Share Copy link Facebook X Linkedin Bluesky Email...

07/11/2026

COW Jobs: Production Manager - Las Cruces, NM

COW Jobs: Production Manager - Las Cruces, NM Brie Clayton November 6, 2026 0 Comments Production Manager November 5, 2026COW Jobs: Faith-Based UGC ...

06/11/2026

Gravity Medias JockeyCam at Center of Melbourne Cup Carnival Busy Week of Horse Racing

It's been a big week in Australia horse racing as the Victoria Racing Club (...

06/11/2026

PBR Expands Production of Teams Championship With Third Mobile Unit, More Cameras

Additional gear includes a second, outside drone; a second slo-mo unit; and a wi...

06/11/2026

University of Alabama Installs Daktronics Displays at Coleman Coliseum

The University of Alabama has installed a new Daktronics display system at Coleman Coliseum in Tuscaloosa. It includes a 360-degree centerhung with four underbe...

06/11/2026

NEP Adds IP-Based Flypack Production Kits in the U.S.

NEP Americas, part of NEP Group, has expanded its remote production offering with new IP-based flypack production kits deployed from the U.S. and available to c...

06/11/2026

Telestream Appoints Joseph Hopkins Chief Revenue Officer

Telestream has appointed Joseph Hopkins Chief Revenue Officer. He has more than two decades of executive experience in media technology. In the role, he will fo...

06/11/2026

SVG GameDay, Ep. 38: Texas Rangers Chris DeRuyscher - Livin the Life at Globe Life Field

In-venue and creative video staffers at the professional and collegiate level ha...