
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 ...
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...
01/06/2026
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, a leading technology and service provider for media-rich organizations, t...
01/05/2026
January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...
17/04/2026
L3Harris towed array systems provide U.S. Navy submarines with extended acoustic...
17/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
17/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
17/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
17/04/2026
Cobalt Digital and SineSix Media Partner to Transform Accessibility Compliance into a More Engaging Viewer Experience at NAB Show 2026
Collaboration integrates...
17/04/2026
Strengthening Appear's North America team with a new Vice President of Business Development
Appear ASA (Appear, OSE: APR), a global leader in live producti...
17/04/2026
New framework helps broadcasters, streaming platforms, and sports organizations apply AI to live video for monetization, metadata, highlights, and downstream wo...
17/04/2026
New whitepaper gives broadcasters and OTT operators independent, codec-by-codec evidence that the VisualOn Optimizer transforms viewer quality of experience.
V...
17/04/2026
Blackmagic Design Announces New Blackmagic URSA Cine Immersive 100G
Brie Clayton April 17, 2026
0 Comments
World's first immersive cinema camera f...
17/04/2026
NAB 2026: Vubiquity and Eluvio Showcase Streaming Solution that Significantly Re...
17/04/2026
What Makes a Good Marathon Running Playlist? We asked Xander Dawson, an eighth-semester saxophone major at Boston Conservatory running the Boston Marathon thi...
17/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
17/04/2026
At NAB Show 2026, PTZOptics (Booth N1902) will showcase a live sports streaming demo created in collaboration with Moondream, offering a new look at how Visual ...
17/04/2026
The Eindhoven University of Technology is a research university in the Netherlands spanning 25 buildings, specialising in engineering, science and technology. D...
17/04/2026
Documentary Editor - US, Remote
Brie Clayton April 17, 2026
0 Comments
Documentary Editor
April 13, 2026Freelance Video Cameraman - Los......
17/04/2026
Blackmagic Design Announces New Blackmagic URSA Cine 12K LF 100G
Brie Clayton April 17, 2026
0 Comments
Revolutionary digital film camera brings cinem...
17/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
17/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
17/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
17/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
17/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
17/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
17/04/2026
Dubformer, the AI-powered dubbing platform, and Adapt, a global leader in AI-driven localization and dubbing solutions, have enabled Goalcast, the inspirational...
17/04/2026
At NAB 2026, Mavis will launch Mavis Studio, a new live production app for iPad that gives creators, broadcasters, and production teams a powerful new way to bu...
17/04/2026
Avid and Google Cloud today announced a multi-year strategic partnership to integrate generative and agentic AI into the media and entertainment industry's...
17/04/2026
At NAB Show, LucidLink will showcase how its platform brings content, people and workflows closer together than ever before, with newly available capabilities a...
17/04/2026
Beth Morrison and Moses Pendleton to be Honored at Boston Conservatory at Berkle...
17/04/2026
Jacob Collier, Jill Scott, and Vinnie Colaiuta to Receive Honorary Doctorates at...
17/04/2026
Back to All News
A Turn-of-the-Century Superpower Adventure of Goofy Misfits: ...
16/04/2026
Appear ASA (OSE: APR) will announce three additions to its X Platform at NAB Sho...
16/04/2026
Harmonic has announced that CentralCast, a centralized master control facility for U.S. public media, has deployed Harmonic's XOS Advanced Media Processor t...
16/04/2026
Interra Systems has announced that Encompass Digital Media has integrated its BA...
16/04/2026
Grass Valley will demonstrate its Media Infrastructure capabilities at NAB Show 2026 (Booth C2408, Central Hall), bringing routing, signal processing, and orche...
16/04/2026
As preparations ramp up for the FIFA World Cup 2026, Verizon has outlined a sweeping connectivity and infrastructure initiative that will underpin broadcast ope...
16/04/2026
Advanced Image Robotics (AIR) has announced its selection for the 2026 MLS Innovation Lab. AIR will work with MLS clubs, players, and executives on automated vi...
16/04/2026
JWX has announced the acquisition of True Anthem, an AI-powered social publishin...
16/04/2026
Jomboy Media and FuboTV Inc. have launched the Jomboy Media Channel, a 24/7 channel available to FuboTV base plan subscribers. The channel, timed to the start o...
16/04/2026
Wave Central, a Domo Broadcast Company (Booth C2820), and EVS Broadcast Equipmen...
16/04/2026
Tata Communications and Formula 1 have released Race Before the Race, the firs...
16/04/2026
DPA Microphones has released a firmware update for its N-Series Digital Wireless...
16/04/2026
Sony's Live Stage at NAB Show 2026 is the place to hear directly from the content creators, end users, and technology experts who are pushing boundaries in ...
16/04/2026
Perfect Game and Youth Prospects have announced a partnership covering broadcast...
16/04/2026
National Collegiate Rugby (NCR) has announced a media rights partnership with Al...
16/04/2026
Audio-Technica has announced two new mid-side (MS) stereo broadcast microphones:...