
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 ...
28/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
28/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
28/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
28/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
28/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
28/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
28/04/2026
Introducing Nx 3-Strip v2 - A Physics-Based Technicolor Reconstruction for DaVin...
27/04/2026
CES Power, a provider of infrastructure for live events, has announced the acquisition of three Ireland-based businesses: GH Energy Rental Ltd, Event Power, and...
27/04/2026
FuboTV Inc. has announced it is developing its Multiview feature for the Fubo streaming service on select LG TVs, including 2024, 2025, and newer 4K and 8K mode...
27/04/2026
Shade, a file management platform for creative teams, has announced a $14 million funding round led by Khosla Ventures, Construct Capital, and Bling Capital, br...
27/04/2026
The Audio Engineering Society (AES) will present the Immersive Audio Academy 12th Edition - Immersive Audio in All Flavors - on April 30, 2026, at 12:00 p.m. ...
27/04/2026
DAZN has announced DAZN48, a creator program for the FIFA World Cup 2026 that will recruit 48 creators - one representing each of the 48 qualified nations - to ...
27/04/2026
FloSports has announced exclusive streaming rights to four CrossFit competitions: Legends Del Mar: CrossFit Semi-Finals, Magic City Games, NorCal Classic, and t...
27/04/2026
Telestream has announced that Pulse, its software-defined test and measurement p...
27/04/2026
Shade has announced it is a Cloud Computing and Storage winner in the 2026 NAB Show Product of the Year Awards. Winners were selected by a panel of industry exp...
27/04/2026
Leading the NBA's video-ads platform, this Penn State grad is at the forefro...
27/04/2026
DAZN has expanded its international broadcast rights for the T100 Triathlon World Tour to include Africa. All races from the T100 calendar will be available for...
27/04/2026
NAB Show has announced the recipients of its 2026 Project of the Year and Product of the Year Awards at a ceremony at the Las Vegas Convention Center.
Each wi...
27/04/2026
DIRECTV has launched on Meta Quest headsets, becoming the first MVPD to offer live TV through the platform. The timing coincides with the stretch run of the MLB...
27/04/2026
TBL Team Boxing League has announced a broadcast agreement with MSG Networks to air all remaining Season 4 fights live across MSG's television and digital p...
27/04/2026
IP integration, interoperability, growth of intercommunications were key concerns for vendors and visitors alike
Attendees at the recently concluded 2026 NAB S...
27/04/2026
Behind The Mic provides a roundup of recent news regarding on-air talent, includ...
27/04/2026
A pro-audio emphasis, spectrum changes, and on-field audio mark the new products and enhancements to existing offerings
Microphones remain the primary point of...
27/04/2026
The Sports Video Group team was all over the NAB Show floor out in Las Vegas las...
27/04/2026
N r Spotify grundades f r 20 r sedan dominerades musikmarknaden av illegal nedladdning. Sedan dess har streaming bidragit till att teruppr tta betalningsvilja...
27/04/2026
Time on Spotify should feel meaningful and intentional, not something that slips...
27/04/2026
New modular multi-effects plug-in revealed
The latest plug-in from Brainworx delivers a modular set of effects designed to offer a convenient alternative to...
27/04/2026
Kit includes supercardioid & shotgun capsules
High-end mic manufacturer Schoeps have recently introduced another member of their Desert Island Set family. O...
27/04/2026
LA2A-inspired 500-series module arrives
Sound Skulptor have announced the upcoming launch of a new 500-series module that aims to recreate one of the most p...
27/04/2026
SSL-inspired compressor unit upgraded
Stam Audio are well known for their painstaking recreations of vintage audio gear, with their extensive product range ...
27/04/2026
Available for current Nielsen ONE Ads customers, this new capability predicts sa...
27/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
27/04/2026
Nippon TV's In-House Proprietary AI Solution AiDi Wins Product of the Year A...
27/04/2026
Outpost Introduces Unlimited Collaboration Model for Review and Approval Workflo...
27/04/2026
Ikegami Announces VFE-P07D Monocular OLED Viewfinder with Tiltable 3.5-inch LCD ...
27/04/2026
Custom Consoles announces the completion of a large Module-R desk and MediaWall monitor display mount for an expanded master control room at Gravity Medias West...
27/04/2026
Other World Computing Launches OWC Express 4M2 Ultra - Thunderbolt 5 Four-Slot N...
27/04/2026
Back to All News
Netflix announces El sobrino, the new film by Dami n Szifron s...
27/04/2026
Red Seat Ventures Announces Exclusive Multiyear Partnership with Kill Tony The Company is the New Monetization and Distribution Home for the Globally Popula...
27/04/2026
RT 2FM is calling on aspiring DJs across Ireland to take their shot at the spot...
27/04/2026
RT continues to champion Ireland's creative life this May, supporting a broad range of festivals, exhibitions and performances across music, theatre, liter...
26/04/2026
Back to All News
Director Yoon Jong-bin Returns with The Generals' (WT), A...
26/04/2026
Back to All News
Nine Queens, Starring Alvaro Morte and Patrick Criado, Starts ...
25/04/2026
In the heart of Mexico City, music, culture, and fashion converged last night as Spotify and Vogue Latin America welcomed guests to an intimate gathering at Soh...