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 ...

07/10/2026

Dalet Flex LTS Delivers Smarter Media Operations from Ingest to Distribution

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

Dolby and MagentaTV Bring Fans Closer to the FIFA World Cup 2026 in Germany with Dolby Vision and Dolby Atmos

June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...

01/09/2026

Sound Particles & SOS Webinar: John Warhurst

Inside the Music and Sound of Michael Sound Particles have announced an upcoming webinar with John Warhurst, the Academy Award- and BAFTA-winning supervisin...

01/09/2026

Roland launch FP-40 piano & Piano Sphere app

Piano offers tutorials, lessons & feedback via app Roland have just launched a new digital piano that integrates with a mobile app in an effort to encourage...

01/09/2026

Trinnov Nova goes immersive

Update introduces 7.1.4 support via Dante Trinnov have just announced a software update that will allow Nova units with eight licensed Optimizer channels to...

01/09/2026

SBS secures exclusive rights to FIFA World Cup 2030

SBS secures exclusive rights to FIFA World Cup 2030 1 September, 2026 Media releases Major sports rights deal ensures all Australians will be able to view...

01/09/2026

SBS announces the launch of outcomes-based measurement across its network

SBS announces the launch of outcomes-based measurement across its network 1 September, 2026 Media releases New offer sees national broadcaster put outcomes...

01/09/2026

Revealed: The Booster Economy' how $140bn+ in everyday inheritances' is funding the lifestyles of the next generation

Revealed: The Booster Economy' how $140bn+ in everyday inheritances'...

01/09/2026

SBS census explorer to provide new insights into contemporary Australia

SBS census explorer to provide new insights into contemporary Australia 1 September, 2026 Media releases The 2026 Census Explorer will give marketers new i...

01/09/2026

SBS and oOh!media launch exclusive SBS News content partnership across office, airports and universities

SBS and oOh!media launch exclusive SBS News content partnership across office, a...

01/09/2026

SBS offers marketers greater reach with extension into outdoor, creator economy and retail

SBS offers marketers greater reach with extension into outdoor, creator economy ...

01/09/2026

SBS and The Guardian join forces to supersize sustainability challenge for 2027

SBS and The Guardian join forces to supersize sustainability challenge for 2027 1 September, 2026 Media releases SBS Media and Guardian Australia have join...

01/09/2026

SBS goes deeper in 2027 with provocative Australian documentaries, star-studded global drama, and unmissable events

SBS goes deeper in 2027 with provocative Australian documentaries, star-studded ...

01/09/2026

Amazon MGM Studios commission thriller based on Stephen King short story, Crouch End

Amazon MGM Studios have commissioned a new thrilling 6-part drama, Crouch End, b...

01/09/2026

Nielsen Announces New Local Methodology Enhancements

New York August 31, 2026 Nielsen is announcing four new local methodology enhancements that will be activated into Local TV currency data starting today, Au...

01/09/2026

Broadcasters Gain Flexibility in Pursuit of 5G Multicasting

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

Winning the Fight Against Churn

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

How Multiviewers Are Evolving Into Information Hubs'

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

IBC2026: New Audio Tools on Tap from Telos Alliance

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

SMPTE Roadshow to Examine Media Infrastructure at IBC2026

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

Roku Debuts Its First 4K OLED TVs

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

Mark Vinten Joins ASG's Audio and Postproduction Team

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

Pronology Introduces New StreamFile Core Capabilities at...

Pronology, a developer of cutting-edge broadcast workflow solutions, showcases the newest capabilities for its StreamFile Core platform at the 2026 IBC Show (S...

01/09/2026

PROTON Unveils Next-Generation FLEXY Camera at IBC 2026

PROTON Unveils Next-Generation FLEXY Camera at IBC 2026 Brie Clayton September 1, 2026 0 Comments 10-metre serialised coax unlocks new perspectives an...

01/09/2026

Hulu Drama The Season Graded with DaVinci Resolve Studio

Hulu Drama The Season Graded with DaVinci Resolve Studio Brie Clayton September 1, 2026 0 Comments Senior Colorist Mark Kueper of Picture Shop crafts ...

01/09/2026

Pluxbox Launches CoreOC to Transform Mission-Critical Media Operations

Pluxbox Launches CoreOC to Transform Mission-Critical Media Operations Brie Clayton September 1, 2026 0 Comments A vendor-agnostic operational control l...

01/09/2026

Layercake Appoints Former FOX SPORTS and Network Ten COO...

Layercake, the company behind the intelligent media workflow platform Streamcake, today announced the appointment of Jon Marquard as Director and Chairperson. T...

01/09/2026

Actus Digital Unveils the Future of Broadcast Monitoring...

Actus Digital, a LiveU company, will unveil the next generation of its Actus X platform at IBC2026 on LiveUs Stand 7.C24, demonstrating how broadcasters can sim...

01/09/2026

Studio Automated and Egripment Power the Tactical Feed fo...

Broadcast Solutions, a leading systems integrator and provider of innovative solutions for the broadcast media industry, delivered transformational technology a...

01/09/2026

OTV turns to Quortex to replace legacy video hardware

Quortex, the intelligent video technology company carved out from Synamedia by Lumine Group, today announced that Odisha Television Network (OTV), the leading r...

01/09/2026

Zixi and Ateme Deepen Strategic Alliance to Accelerate Hy...

Zixi and Ateme today announced an expanded strategic partnership to help broadcasters and content owners accelerate the transition from satellite to resilient I...

01/09/2026

CBS Boston Debuts New AR/VR Technology-Driven Studio

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

FCC Raises Regulatory Fees for TV Stations

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

For-A Introduces Go Vertical! AiDi and AiDi Sports Hub

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

T-Mobile Continues to Dominate Ooklas Fixed Wireless Speed Tests

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

Carr Announces New FCC Enforcement Bureau Chief

Share Copy link Facebook X Linkedin Bluesky Email...

01/09/2026

TX confirmed for Gemma Collins: Everything. All At Once.

An intimate eight-part Sky Original reality series following Gemma through a year in which everything changes, launching 15 September on Sky and streaming servi...

01/09/2026

Friedrichstadt-Palast Relies on Riedel for IP-Centered Production Infrastructure

Wuppertal September 1, 2026 Friedrichstadt-Palast Relies on Riedel for IP-Centered Production InfrastructureFriedrichstadt-Palast in Berlin, the world's l...

01/09/2026

FOR-A Introduces Go Vertical! AiDi and AiDi Sports Hub Under Expanded viztrick AiDi AI Technology Brand

On-device AI platform gives broadcasters and content creators purpose-built tool...

01/09/2026

Experience La Dolce Vita with Donal's Italian Kitchen

Join Donal Skehan in discovering the best of everyday Italian cooking in brand new series, airing Wednesday 2 September In this brand-new series, Donal's I...

01/09/2026

RT Supporting the Arts is supporting 28 cultural events nationwide this September

RT Supporting the Arts is delighted to spotlight a diverse range of arts, cultu...

31/08/2026

Pixotope Consolidates Virtual Production Tools into Unified Platform

Pixotope Technologies has announced a unified platform offering all Pixotope capabilities across three editions, available with the Pixotope 26.3 release in Q3 ...

31/08/2026

Elektron update Tonverk OS

Sampler gains Overbridge multitrack streaming Elektron's polyphonic sampler, the Tonverk, has just received an OS update that introduces multitrack stre...

31/08/2026

Thorus XT from UVI

Popular chorus plug-in gains second engine UVI's latest plug-in offers a fresh new take on their best-selling chorus effect, combining a pair of engines...

31/08/2026

Optus commits 3% of consumer brand spend to First Nations media in new landmark partnership with NITV

Optus commits 3% of consumer brand spend to First Nations media in new landmark ...

31/08/2026

FingerWorks Telestrators Expands European Presence Throug...

FingerWorks Telestrators, the industry leader in software-based telestration and live sports analysis solutions, announces its new partnership with Broadcast R...

31/08/2026

ARISDA Bridge Launches: DaVinci Resolve Timecode, Studio Clock, and Work-Time Tracking in One Windows App

ARISDA Bridge Launches: DaVinci Resolve Timecode, Studio Clock, and Work-Time Tr...

31/08/2026

Short Film All That's Left Shot with URSA Cine 12K LF

Short Film All That's Left Shot with URSA Cine 12K LF Brie Clayton August 31, 2026 0 Comments Intimate drama edited and graded in DaVinci Resolve ...

31/08/2026

Bridge Technologies Announces Support for Blackmagic IP10 Codec

Bridge Technologies Announces Support for Blackmagic IP10 Codec Brie Clayton August 31, 2026 0 Comments Both booths will showcase each other's tec...