
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
11/12/2025
Dalet, a leading provider of cloud-native, end-to-end media workflow solutions, ...
20/11/2025
MLB Media-Rights Shakeup: NBC's New Three-Year Deal Covers Sunday Night Bas...
20/11/2025
MLB Media-Rights Shakeup: New Deal Will Bring 30 National Games to ESPN's Li...
20/11/2025
MLB Media-Rights Shakeup: Netflix Lands Opening Night, Home Run Derby, Field of ...
20/11/2025
MLB Media-Rights Shakeup Overview: ESPN, NBCU, Netflix Ink Three-Year DealsESPN gets new 30-game package, MLB.TV; NBC extends Sunday nights; Netflix adds tentpo...
20/11/2025
SVG Students To Watch: Henry Thuss, Indiana UniversityThe Southern California product has his goals set on the front benchBy Brandon Costa, Director of Digital ...
20/11/2025
Done+Dusted's Guy Carrington on Creating the Spectacular League of Legends W...
20/11/2025
FIA Extreme H World Cup Host Broadcaster Aurora Goes Inside the Production of th...
20/11/2025
Platinum White Paper: Amagi Utilizes Cloud Production for Sports Events - Multi-...
20/11/2025
2025 Sports Broadcasting Hall of Fame: Marc Herklotz, Steady Hand Behind the Sce...
20/11/2025
NFL Deep Dive: How 32 Cameras at Each Stadium Drive Virtual Measurement, Boundar...
20/11/2025
Charlie Shackleton attends the 2025 Sundance Film Festival premiere of Zodiac K...
20/11/2025
Your playlists are personal. They're the soundtracks to your road trips, your quiet mornings, and your biggest celebrations; collections of memories and dis...
20/11/2025
Spotify, uzun s redir zerine al t T rk m zik k lt r n n ikon haline gelmi ...
20/11/2025
For the first time, Spotify has teamed up with The Hollywood Reporter to cohost ...
20/11/2025
This year's ARIA Awards marked a turning point for Australian music, and Spotify was right at the heart of it. For the first time in the awards' nearly ...
20/11/2025
L3Harris has achieved NSA Cybersecurity Directorate certification for its KSV-650 space hub end cryptographic unit, ensuring secure, adaptable communications fo...
20/11/2025
L3Harris is strengthening its long-term partnership with Poland through the opening of a new facility in Warsaw to serve as a central business hub for regional ...
20/11/2025
15 March 2012
SHARE Facebook Twitter Linkedin Email
Cinegy and Vericom are pleased to announce the recent deployment of Cinegy Archive for production and as...
20/11/2025
6 September 2012
SHARE Facebook Twitter Linkedin Email
FIC Turkey supplies media content to Pay TV under Fox TV Channel brands in Turkey.
At the start of s...
20/11/2025
25 June 2014
SHARE Facebook Twitter Linkedin Email
Last month VIVA finalized its Cinegy installation in order to produce and broadcast the World Cup Brazil ...
20/11/2025
1 October 2014
SHARE Facebook Twitter Linkedin Email
With 5 locations spread out around Baden-W rttemberg, Schw bisch Media required a scalable end to end s...
20/11/2025
27 April 2015
SHARE Facebook Twitter Linkedin Email
Cinegy, which develops and produces media asset management products that are used in flagship production...
20/11/2025
12 August 2015
SHARE Facebook Twitter Linkedin Email
Munich, Germany, 26 October 2015 - Cinegy, which develops and produces software technology for digital ...
20/11/2025
5 November 2015
SHARE Facebook Twitter Linkedin Email
Munich, Germany 3 November 2015 - Cinegy, which develops and produces software technology for digital ...
20/11/2025
12 February 2016
SHARE Facebook Twitter Linkedin Email
Munich, Germany 9 February 2016 - Cinegy, which develops and produces software technology for digital...
20/11/2025
22 June 2016
SHARE Facebook Twitter Linkedin Email
Munich, Germany 21 June 2016 - Cinegy today announced that ABS BROADCAST, one of the largest independentl...
20/11/2025
10 January 2017
SHARE Facebook Twitter Linkedin Email
Find us on page 12 of the Program Guide 2016
Tags
NewBay Media Awards , Program Guide 2016 , broadc...
20/11/2025
15 March 2017
SHARE Facebook Twitter Linkedin Email
Munich, Germany 15 March 2017 - Cinegy today announced that Thailand's Next Step direct-to-home Free...
20/11/2025
12 December 2017
SHARE Facebook Twitter Linkedin Email
Munich, Germany 13 December 2017 - Cinegy today announced that it is making its Cinegy Air Cloud Pack...
20/11/2025
25 June 2018
SHARE Facebook Twitter Linkedin Email
Munich 25th June 2018 - Cinegy today announced that Canada-based Accessible Media Inc. (AMI) has implemen...
20/11/2025
27 May 2019
SHARE Facebook Twitter Linkedin Email
The best quality live video from the worst networks - Haivision
Although DVB and the World Wide Web are...
20/11/2025
24 November 2020
SHARE Facebook Twitter Linkedin Email
ATV Expand and Increase their Playout and Editing Capabilities using Cinegy Software
Munich, Germany...
20/11/2025
1 September 2021
SHARE Facebook Twitter Linkedin Email
Munich, Germany, 1st September 2021:
Cinegy GmbH, the premier provider of software technology for di...
20/11/2025
20 September 2021
SHARE Facebook Twitter Linkedin Email
ElectronicVerve continues a strong history of supporting Cinegy customers in India
Munich, Germany,...
20/11/2025
1 November 2022
SHARE Facebook Twitter Linkedin Email
Munich, Germany, 01 November 2022: Cinegy, a premier provider of software technology for digital video...
20/11/2025
31 October 2023
SHARE Facebook Twitter Linkedin Email
Britt Broadcast at TBC...
20/11/2025
CINCINNATI Oklahoma Community Television (OCT) has selected GatesAir and Triveni Digital as key technology partners in an ATSC 3.0 deployment that establishes a...
20/11/2025
WASHINGTON The Federal Communications Commission has opened a wide-ranging inquiry into the relations between broadcast networks and their affiliates that could...
20/11/2025
NEW YORK Ad spend in the creator economy has more than doubled since 2021 from $13.9B to $29.5B in 2024 and that amount is projected to reach $37 billion in 202...
20/11/2025
Graduate Spotlight: Krysta Mirsik DePuy The educator from Hackettstown, New Jersey, shares how it took her 11 years to find the right graduate program for her...
20/11/2025
LONDON The winners of the Rise Awards 2025, which recognize women and companies whose achievements have stood out in the media technology industry, have been an...
20/11/2025
SANTA MONICA & NEW YORK Lionsgate's Worldwide Television Distribution Group and Debmar-Mercury have launched MovieSphere Gold in more than 30 million homes....
20/11/2025
ALAMEDA, Calif. Clear-Com has introduced its four-channel HelixNet beltpack, a next-generation advancement of its widely used two-channel model, and anticipates...
20/11/2025
NEW PROVIDENCE, N.J. Streaming technology and services provider Kiswe has launched Kiswe Core, a next-generation cloud-based platform designed to simplify the s...
20/11/2025
MOUNTAIN VIEW, Calif. Dolby Laboratories has signed on as an official signature partner of the Bay Area Host Committee (BAHC) for the 2026 Super Bowl and the we...
20/11/2025
STUTTGART, Germany 3 Screen Solutions (3SS) has announced that the Canadian multiservice operator Telus has launched its Telus TV+ entertainment platform on Sam...
20/11/2025
Major League Baseball has announced deals with ESPN, NBCUniversal and Netflix covering 2026-2028 that make ESPN the exclusive distributor for MLB.TV, put regula...
20/11/2025
Berklee Presents Holiday Extravaganza: Duke Ellingtons The Nutcracker Suite and ...
20/11/2025
Thursday 20 November 2025
Football seven nights a week, as Sky Sports secures a...