
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 ...
07/10/2026
Dalet, a leading technology and service provider for media-rich organizations, today announced the latest Long-Term Supported (LTS) release of Dalet Flex. Build...
06/09/2026
June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...
04/09/2026
Media organisations interested in the Media Innovation Europe 3.0 Business Innovation Synergizer (BIS) can now consult a new FAQ document providing additional a...
04/09/2026
Eluvio will demonstrate updates to its Content Fabric platform at IBC2026 (Hall 8, Stand 8.MS5, and Future Tech Zone, Hall 14, Stand 14.A58, September 11-14). C...
04/09/2026
LiveU has joined the IBC Accelerator's Smart Stories consortium, a multi-vendor initiative developing an open standard for Story Context interoperability in...
04/09/2026
Telos Alliance will demonstrate new audio observability capabilities at IBC2026 (Stand 8.D37, RAI Amsterdam, September 11-14), covering monitoring of audio heal...
04/09/2026
World Team Tennis (WTT) has announced a broadcast partnership with USA Sports, the sports division of Versant. USA Sports will air all six of WTT's live mat...
04/09/2026
Gravity Media has appointed Alex Pannell as Chief Business Officer. Pannell joins from Appear, where he served as Chief Commercial Officer. He will be based in ...
04/09/2026
Dalet has announced new agentic workflow capabilities for Dalia, its AI platform for media organizations, ahead of IBC2026. The updates extend Dalia from an AI ...
04/09/2026
L-Acoustics has achieved EN 54 certification across a portfolio of loudspeakers,...
04/09/2026
EVS and Matrox Video have announced a technology partnership integrating Matrox ...
04/09/2026
NEP Group will exhibit at IBC2026 (Hall 7, Stand 7.B55, RAI Amsterdam, September 11-14), demonstrating software-defined production capabilities across NEP Platf...
04/09/2026
The Television Academy has awarded an Engineering Emmy to Dr. Roman Foltyn, Chief Engineer of FoMaSystems, and Curt O. Schaller for the development of the ARRI ...
04/09/2026
InSync Technology will exhibit at IBC2026 (Stand 1.A55, RAI Amsterdam, September 11-14), demonstrating its FrameFormer and NOVA conversion platforms for frame r...
04/09/2026
The Professional Triathletes Organisation (PTO) has signed a multi-year agreemen...
04/09/2026
Accedo and MediaKind have announced a white-label, end-to-end streaming solution for operators, combining Accedo's native application framework and cloud-ba...
04/09/2026
TAG Video Systems has announced TAG Blue, a cloud platform for shared monitoring visibility across video delivery chains, with AI-powered root-cause analysis. T...
04/09/2026
TwelveLabs has launched a video compliance platform for media organizations, inc...
04/09/2026
The Television Academy and the National Academy of Television Arts & Sciences ha...
04/09/2026
Powerful new soft synth announced
Traveler is the first software instrument to be released by KeySolutions Sounds, and it's an ambitious one! Said to co...
04/09/2026
Free virtual instrument range expanded
The latest expansion of e-instruments' free Fragments series introduces a packed-down version of the company'...
04/09/2026
Company recognised for second time
Two years after winning an Engineering, Science & Technology Emmy Award for dxRevive Pro, Accentize have been recognised ...
04/09/2026
Bilbao - 3rd September 2026 -AgileTV, a leading provider of end-to-end TV and vi...
04/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
04/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
04/09/2026
ACEMAGIC First to Introduce Ryzen AI Max PRO 495 AI Mini Workstation at IFA 202...
04/09/2026
Krotos Brings Video to Sound Footsteps Directly into Premiere Pro and DaVinci Re...
04/09/2026
RED DIGITAL CINEMA Comes Out Swinging at IBC 2026 with Next-Generation Live Broa...
04/09/2026
Orty v2.0-web - the cold-outreach assistant moves to the web
Brie Clayton September 4, 2026
0 Comments
Orty today announced v2.0-web of its AI cold-ou...
04/09/2026
Lightware is expanding its LARA (Lightware Advanced Room Automation) platform with the GUDE Power Distribution Units (PDU) driver module. GUDE devices can now b...
04/09/2026
Lightware shares the second release in its ESG communications series. Following the first piece, which focused on the companys environmental performance, this r...
04/09/2026
Big Blue Marble supported a leading European public service broadcaster in delivering the Soccer World Cup 2026 streams, supplying more than 10 Tbps of bandwidt...
04/09/2026
Outstanding achievement in engineering, science and technology
Hitomi Broadcast has been recognised with an Engineering, Science & Technology Emmy from the Ac...
04/09/2026
California, Hollywood at a Crossroads
Andy Marken September 3, 2026
0 Comments
I'm doing everything alone. Crossing roads alone. Seeing the Eiffe...
04/09/2026
Berklee Announces Winners of 2026 SongwritersdB Songwriting Contest Students Luca Alexandru, Annika Wild, and Johanna James received the top prizes for origin...
04/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
04/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
04/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
04/09/2026
RT ANNOUNCE NEW DRAMA THE MURDER OF MR. MOONLIGHT
BASED ON THE DISAPPEARANCE...
03/09/2026
Yospace will be at IBC from 11th - 14th September (booth 5.C78). For more inform...
03/09/2026
NEP Group has announced leadership changes at Creative Technology Group. Founder and CEO Graham Andrews will step away from day-to-day leadership at the end of ...
03/09/2026
The NFL and TikTok have announced a multi-year partnership renewal expanding the league's presence on the platform. NFL posts on TikTok increased more than ...
03/09/2026
Grass Valley has appointed Ronny Van Geel as Vice President, Cameras. Van Geel began his career in 1999 at Philips DVS and moved into product management in 2005...
03/09/2026
Telestream has announced Vantage Super Resolution, an AI-powered upscaling capability for the Vantage media workflow platform, developed in collaboration with N...
03/09/2026
Solid State Logic (SSL) will debut the TCA Tour at IBC2026 (Hall 8, Stand 8.B45), a portable production system built from System T components in a desktop frame...
03/09/2026
DPA Microphones has announced the 6388 CORE Headset Microphone, making its debut at IBC2026 (Hall 8, Stand D60). The supercardioid headset features a physicall...
03/09/2026
Qvest will present a multi-vendor Dynamic Media Facility (DMF) showcase at IBC2026 (Booth 10.C24), demonstrating how the EBU's DMF architecture can be imple...
03/09/2026
Imagine Communications will showcase the Magellan PanelFlex control surface and other control portfolio updates at IBC2026 (Stand 1.B73, RAI Amsterdam, Septembe...
03/09/2026
Bridge Technologies will announce at IBC2026 (Booth 1.A71) that its VB440 production probe is now available as a software-based solution, deployable on commerci...