
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
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
06/09/2026
June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...
04/08/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
04/07/2026
April 7 2026, 19:00 (PDT) Detective Conan: Fallen Angel of the Highway Opens in...
25/06/2026
Launching a Career in Broadcast Engineering: Academic Paths and Essential Certif...
25/06/2026
This superstar shooter/storyteller from Central Indiana hopes to make his mark in the blossoming sports-documentary and -features space
In the live-sports-vid...
25/06/2026
Presidio and the National Hockey League have announced a multiyear renewal of their North American partnership. Presidio will remain an Official Technology Inno...
25/06/2026
Strike Fighter League (SFL) is the world's first professional air combat digital sport that combines elite human performance and physical immersion with cut...
25/06/2026
Rise, the award-winning advocacy group for gender diversity in the broadcast and media technology sector, is pleased to announce the global mentoring cohort for...
25/06/2026
The 2026 American Association of Professional Baseball (AAPB) All-Star Game will...
25/06/2026
Mediaproxy has named Heartland Video Systems (HVS) as its exclusive partner for US television broadcasting. The Wisconsin-based systems integrator will represen...
25/06/2026
Backblaze has formed an agreement with CoreWeave to create The Essential Cloud for AI.
Under the multi-exabyte, $335 million agreement, Backblaze will provide...
25/06/2026
Clear-Com has announced the successful deployment and testing of FreeSpeak Cell by RTL Deutschland during a live event production at the N rburgring race circui...
25/06/2026
Mobile TV Group (MTVG) has announced the launch of the MTVG Production Platform,...
25/06/2026
Sony Pictures Entertainment (SPE) has announced a $100 million strategic investment in Cosm as lead investor in the company's Series C financing round, acqu...
25/06/2026
FOX Sports and Concacaf have announced a multi-year media rights agreement making FOX Sports the U.S. English-language home of the Concacaf Gold Cup and Concaca...
25/06/2026
Daktronics and Grass Valley have received the rAVe Pubs Best Solution for Large ...
25/06/2026
Six free workshops across two days
Global music education platform Music Production for Women (MPW), have just announced a brand new and highly anticipated ...
25/06/2026
Popular pedalboard PSU gets an upgrade
The DC7 v2 is a new and improved version of CIOKS' renowned effects pedal PSU, and is said to be the thinnest, mo...
25/06/2026
Optimised for lush, enveloping sounds
Described as an instantly rewarding reverb , the latest addition to Arturia's range of creative effects plug-ins ...
25/06/2026
27 June 2026, Westminster University Harrow Campus
GearExpo UK is now upon us, with just two days to go until 150 of the worlds top pro-audio brands and ind...
25/06/2026
The Name You Know, The Lineup You'll Love - SBS2 Returns
25 June, 2026
Media releases
SBS Viceland rebrands as SBS2 on Friday 21 August, bringing the c...
25/06/2026
Cable Gains Share for Second Consecutive Month in Six-Month-High Finish, Boosted...
25/06/2026
alt= data-nectar-img-srcset=https://www.antonbauer.com/wp-content/uploads/2026/0...
25/06/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
25/06/2026
The Eurovision Song Contest 2026 in Vienna was a significant success for the Austrian public broadcaster ORF. In Austria, more than 1.5 million viewers tuned in...
25/06/2026
Wisycom has further strengthened its ecosystem of professional wireless solutions with the MPR60 Wideband IEM/IFB Receiver with expanded multichannel IFB mode, ...
25/06/2026
Ease Live, the interactivity expert, today announced that its graphics overlay platform is powering a new interactive experience on Rally.TV, the official video...
25/06/2026
VFX History: the origin of After Effects
Graham Quince June 25, 2026
0 Comments
Before it was Adobe, it was CoSA. This is the VFX history of Adobe Aft...
25/06/2026
Creative Remote, the provider of remote and hybrid offline editing infrastructure, today announced the opening of 41, its new offline edit facility located at 4...
25/06/2026
Rise, the award-winning advocacy group for gender diversity in the broadcast and media technology sector, is pleased to announce the global mentoring cohort for...
25/06/2026
Emergent, a pioneer in browser-based, AI-enhanced content production environments, today announced a strategic partnership with ROCKET, a premier media-centric ...
25/06/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
25/06/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
25/06/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
25/06/2026
Thursday 25 June 2026
Read all about it! The Paper will return for a second sea...
25/06/2026
Thursday 25 June 2026
How to watch the 2026/27 EFL season on Sky Sports
Which EFL matches are Sky Sports showing on the 2026/27 opening weekend?
Sky Sports w...
25/06/2026
Summer savings are heating up. From the Steam Summer Sale to GeForce NOW membership discounts, this week's GFN Thursday delivers double the deals and more w...
25/06/2026
Launching today (Thursday 25 June), new RT podcast Ramble with Joe McGucken is a series of curiosity-driven conversations where actor, writer and comedian Joe ...
25/06/2026
Immune molecule may drive excessive drinking in alcohol use disorder Scripps Research scientists showed that blocking an immune molecule tied to inflammation r...
24/06/2026
Plus: VoiceAssist Basic now available to UA LUNA users
NoiseWorks Audio have just released an update that adds a new Mouth De-Click module to the Advanced t...
24/06/2026
New heavy-duty mic stand joins range
The latest arrival to Gator's Frameworks family introduces a new heavy-duty boom stand that's been designed for...
24/06/2026
Latest major plug-in update goes live
Waves have just announced that the latest major update for their hugely popular plug-in range is now officially availa...
24/06/2026
When assessing cellular coverage, many people look at the signal bars displayed on a smartphone, router or modem. More bars are often assumed to mean better per...
24/06/2026
Rohde & Schwarz THORIS sets new standard for counter UAS defense At Eurosatory 2026, Rohde & Schwarz is unveiling THORIS, a German engineered, sovereign count...
24/06/2026
Rohde & Schwarz expands voice communications modernization program for Egyptian ...
24/06/2026
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({...
24/06/2026
Streaming sets record high of 46.6% of ad supported TV viewing, driven by Super Bowl and Winter Olympics; overall share of ad supported TV remains steady
NEW Y...
24/06/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
24/06/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...