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 ...

04/08/2026

Dalet Announces Commercial Availability of Dalia, Bringing Media-Aware Agentic AI to Enterprise Productions

Dalet, a leading technology and service provider for media-rich organizations, t...

04/07/2026

Detective Conan: Fallen Angel of the Highway Opens in Dolby Cinemas Across Japan, Presented in Dolby Atmos and Dolby ...

April 7 2026, 19:00 (PDT) Detective Conan: Fallen Angel of the Highway Opens in...

01/06/2026

Dolby Sets the New Standard for Premium Entertainment at CES 2026

January 6 2026, 05:30 (PST) Dolby Sets the New Standard for Premium Entertainment at CES 2026 Throughout the week, Dolby brings to life the latest innovatio...

02/05/2026

Dalet Flex LTS Delivers Smarter Search, Faster Editing, and an AI-Ready Foundation for Modern Media

Dalet, a leading technology and service provider for media-rich organizations, t...

01/05/2026

NBCUniversal's Peacock to Be First Streamer to Integrate Dolby's Full Suite of Premium Picture and Sound Innovations

January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...

14/04/2026

Nielsen Appoints Roberto Ruiz to Lead Measurement Science

Ruiz has helped fuel growth for both client-side and media companies, including, most recently, TelevisaUnivision. He will spearhead transformation, innovatio...

14/04/2026

LTN Appoints Mark Romano, Edward Cox to Leadership Positions

Share Copy link Facebook X Linkedin Bluesky Email...

14/04/2026

Grass Valley Adds Telestream Vantage, Pulse and UP to AMPP

Share Copy link Facebook X Linkedin Bluesky Email...

14/04/2026

XenData Announces Backup, Archive and Cloud-Connect for LucidLink

Share Copy link Facebook X Linkedin Bluesky Email...

14/04/2026

Thomas Riedel Acquires ARRI

Share Copy link Facebook X Linkedin Bluesky Email...

14/04/2026

Shotoku Introduces the World to Aura P2 PTZ Prompter Pann...

Shotoku Introduces the World to Aura P2 PTZ Prompter Panner at NAB 2026 New system removes PTZ pan restrictions for teleprompter-based productions Shotoku US...

14/04/2026

Telestream and Grass Valley Connect Live and File-Based W...

Integration of Vantage, Pulse, and Telestream UP with Grass Valley AMPP Ecosystem enables scalable, interoperable workflows spanning live production and file-ba...

14/04/2026

Dalet Appoints Brian Doheny as President and Chief Revenu...

Enterprise growth leader to scale Dalet's next phase of innovation and global expansion New York, NY April 14, 2026 Dalet, a leading technology and ser...

14/04/2026

Berklee Celebrates Prince's Legacy in Two-Night Signature Series Event

Berklee Celebrates Prince's Legacy in Two-Night Signature Series Event Directed by Tia Fuller, the Prince Project (April 16-17) brings together more than ...

14/04/2026

Arooj Aftab Is Anything but Predictable

Arooj Aftab Is Anything but Predictable The singular artist explores the juxtaposition of grief and joy, dark and light, in her distinctive sound. April 14, ...

14/04/2026

Appear Expands X Platform from Core to Edge at NAB Show 2...

Appear launches include XM estate management and new X Platform processing enhancements to add density for next-generation hybrid & IP workflows, X5 is also now...

14/04/2026

Synamedia turns OTT content into TikTok-style feeds with...

Addressing the needs of a new generation's viewing habits, Synamedia launches GO Shorts. The AI-powered module turns existing catalogues into TikTok-style ...

14/04/2026

NAB 2026 - Vubiquity and Eluvio Showcase Streaming Soluti...

Vubiquity, an Amdocs company and global leader in technology-led media services, will be showcasing a new end-to-end streaming solution in collaboration with El...

14/04/2026

LiveU Announces Expanded Collaboration with Sony at NAB S...

LiveU today announced a significant expansion of its collaboration with Sony Corporation, introducing integrated support for Sony's file-based workflow solu...

14/04/2026

BBC World Service TV selects Open Broadcast Systems for I...

Open Broadcast Systems (https://www.obe.tv/) has announced that BBC World Service has selected its decoders for IP Television distribution. The high-quality, lo...

14/04/2026

Blackmagic Design Announces DaVinci Resolve 21

Blackmagic Design Announces DaVinci Resolve 21 Brie Clayton April 14, 2026 0 Comments Major update adds new Photo page bringing Hollywood's most a...

14/04/2026

Sinclair's WTOV Taps Brightline for Lighting Upgrade

Share Copy link Facebook X Linkedin Bluesky Email...

14/04/2026

Grass Valley Showcases Alliance Ecosystem at 2026 NAB Show

Share Copy link Facebook X Linkedin Bluesky Email...

14/04/2026

FCC Selects New Lead Administrator for U.S. Cyber Trust Mark Program

Share Copy link Facebook X Linkedin Bluesky Email...

14/04/2026

Gray Media Names Jim Hays GM of WTHI

Share Copy link Facebook X Linkedin Bluesky Email...

14/04/2026

NAB Blasts CTA in FCC Sports Probe Comments

Share Copy link Facebook X Linkedin Bluesky Email...

14/04/2026

Wowza to Showcase AI-Powered Video Workflows and Emerging...

Wowza will return to NAB Show 2026 with a set of live demonstrations focused on how video infrastructure is evolving for a new generation of AI-powered and oper...

14/04/2026

Stegawave Debuts Real-Time Forensic Watermarking to Tackle Piracy in Live Sports Streaming

Stegawave Debuts Real-Time Forensic Watermarking to Tackle Piracy in Live Sports...

14/04/2026

Living in Boston: A Guide for Incoming Boston Conservatory Students

Living in Boston: A Guide for Incoming Boston Conservatory Students From navigating the T to balancing school with professional gigs, a current student shar...

14/04/2026

Just What Is Genre These Days, Anyway?

Just What Is Genre These Days, Anyway? Understanding the business and art of genre-bending in 2026. April 13, 2026 By Bryan Parys Illustration by Jack Fla...

14/04/2026

Lenora Helm Hammonds Is Turning Passion Into Plan A

Lenora Helm Hammonds Is Turning Passion Into Plan A The dean of the Professional Education Division has seen the industry from all sides. Now shes bringing it...

14/04/2026

How Michelle Zalabak Found Her Dream Career in Music and Finance

How Michelle Zalabak Found Her Dream Career in Music and Finance The Warner Music Group deal analysis manager helps determine what artist catalogs are worth a...

14/04/2026

SES, Japan Airlines to Expand Multi-Orbit Inflight Connectivity to Long-Haul Fleet

Luxembourg, April 14, 2026 - SES, a leading space solutions company, today annou...

13/04/2026

ToolsOnAir Composition Builder 2026 Boilerplate

ToolsOnAir Composition Builder 2026 Boilerplate More Details: The Composition Builder 2026 application for macOS enables TV stations and Live Event broadcast...

13/04/2026

ToolsOnAr just:live pro 2026 Boilerplate

ToolsOnAr just:live pro 2026 Boilerplate More Details: just:live pro 2026 is a Multi-Channel Live Production Playout solution for video and static or real-ti...

13/04/2026

ToolsOnAr just:play pro 2026 Boilerplate

ToolsOnAr just:play pro 2026 Boilerplate More Details: just:play pro 2026 is a Multi-Channel automated 24/7 Master Control playout solution with SD, HD and U...

13/04/2026

ToolsOnAr live:cut 2026 Boilerplate

ToolsOnAr live:cut 2026 Boilerplate More Details: live:cut is an option to just:in mac pro 2025 and enables multicamera production workflows for up to 16 cam...

13/04/2026

ToolsOnAir Just In Mac Lite NDI 2026 Boilerplate

ToolsOnAir Just In Mac Lite NDI 2026 Boilerplate More Details: The Just In Mac Lite NDI application is a streamlined media capture solution designed specific...

13/04/2026

ToolsOnAir Just In Mac Lite 2026 Boilerplate

ToolsOnAir Just In Mac Lite 2026 Boilerplate More Details: The Just In Mac Lite application is a streamlined media capture solution designed specifically for...

13/04/2026

ToolsOnAir just:in mac pro 2026 Boilerplate

ToolsOnAir just:in mac pro 2026 Boilerplate More Details: just:in mac pro is a macOS-based client-server multichannel capture solution to record SDI, HDMI, N...

13/04/2026

Jnger Audio Joins EBU ADM Implementers Group as Founding Member

Telos Alliance has announced that J nger Audio has joined the EBU ADM Implementers Group (ADM-IG) as a founding member. The group is focused on advancing ADM an...

13/04/2026

NAB 2026: Grass Valley to Showcase Alliance Partner Ecosystem

Grass Valley will demonstrate its Alliance Partner ecosystem at NAB Show 2026 (Booth C2408, Central Hall, April 19-22), showing AMPP integrations across live pr...

13/04/2026

NAB 2026: Media Links to Demonstrate IP Transport Solutions

Media Links will exhibit at NAB Show 2026 (Booth W2033), demonstrating IP transport solutions for live production including hitless protection technology, Xscen...

13/04/2026

NBC Sports Partners with Overtime for OT7 Football League and Navy All-American Bowl

NBC Sports has announced a programming, distribution, and sales partnership with...

13/04/2026

FloSports Promotes Jayar Donlan from COO to President

FloSports has promoted Chief Operating Officer Jayar Donlan to President, effective immediately. In his new role, Donlan will lead the company's commercial,...

13/04/2026

MASV Case Study: PanCam Pictures Uses MASV for Remote Post-Production at Senior Bowl 2026

PanCam Pictures, the documentary production company founded by Paul Camarata, us...

13/04/2026

NAB 2026: Mimir to Showcase Cloud Production Platform

Mimir will exhibit at NAB Show 2026 (North Hall, Booth N2850), demonstrating its cloud-native media production platform with new capabilities including Mimir Cu...

13/04/2026

NAB 2026: BBright Adds RIST Protocol Support to IP Gateway

BBright has announced that its IP Gateway now supports the Reliable Internet Stream Transport (RIST) protocol. The addition will be introduced at NAB Show 2026 ...

13/04/2026

Net Insight Awarded ESA NAVISP Development Project for PNT Technology

Net Insight has been awarded a development project through the European Space Agency's Navigation Innovation and Support Program (NAVISP), with co-funding f...