
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...
08/08/2026
Star Wars Hyperspeed Tutorial: The No-Echo Method in After Effects
Graham Quince August 8, 2026
0 Comments
The Echo Effect to create long streaks is n...
08/08/2026
Chyron Releases AXIS 4.0 With Expanded News Workflows and Richer Map Storytellin...
08/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/08/2026
Foundry Unlocks Professional-Grade AI for VFX with Griptape Enterprise; Appoints...
08/08/2026
Award Winning New Horror Film Shot Using Blackmagic Camera App
Brie Clayton August 7, 2026
0 Comments
Fire Alive, shot using the Blackmagic Camera i...
08/08/2026
The global buildout of AI infrastructure reached a new milestone today - Firebird, an emerging AI cloud, launched the CIS region's largest AI factory in Arm...
07/08/2026
Diversified has appointed industry veteran Pete Emminger as global chief technology officer. Emminger will lead the company's global go-to-market technology...
07/08/2026
O'Shea Jackson Jr., Dave Franco, and Mason Thames appear in Idiots by Macon Blair, an official selection of the 2026 Sundance Film Festival. (Courtesy of ...
07/08/2026
An instrument made for the adventurous composer
Described as an instrument made for the adventurous composer , Sonuscore's latest sample library has b...
07/08/2026
Latest solo Synchron libraries arrive
VSL have just released the final two instalments in their range of muted solo string libraries. Recorded in the large ...
07/08/2026
Channel strip offers plug-in control & recall
Along with some new additions to their Inherit modular preamp system, GC Audio's announcements for NAMM 20...
07/08/2026
Opening Statement: Public hearing of the Inquiry into Racism, Hate and Violence ...
07/08/2026
DoubleVerify Shareholders to Receive $13.60 Per Share in Cash, Representing a 30...
07/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/08/2026
The Award Recognizes ACT's Outstanding Sales Performance, Marketing Collaboration and Long-standing Commitment to the NEUTRIK Brand
ACT Entertainment, one ...
07/08/2026
Beamr Imaging Ltd. (Nasdaq: BMR), a leader in video optimization technology and solutions, today announced it is bringing AI upscaling to live sports, broadcast...
07/08/2026
Berklee City Music Presents Nine Scholarships and Awards at Annual Concert Student recipients from seven states and Canada received scholarships, housing awar...
07/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/08/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
07/08/2026
Riedel Communications at IBC2026: Live Production Experience Showcasing Integrated IP Production Workflows
At IBC2026, Riedel Communications will bring modern ...
07/08/2026
Shotoku Showcases Expanding Aura PTZ Ecosystem and Award-Winning Swoop Robotic Crane at IBC2026
Shotoku Broadcast Systems will officially introduce its Aura fa...
07/08/2026
Highlights will include new Dante fiber connectivity, expanded IPMX capabilities and award-winning signal processing solutions
Cobalt Digital, the leading des...
07/08/2026
Bob Moses Concert at Red Rocks Captured with URSA Cine 12K LF
Brie Clayton August 6, 2026
0 Comments
PYXIS 12K and URSA Cine 12K LF enable cinematic c...
07/08/2026
Use It or Else Is Not an AI Implementation Strategy
Andy Marken August 6, 2026
0 Comments
Source - Hitchhikers Guide to the Universe, Touchstone Pi...
07/08/2026
Friday 7 August 2026
Heated Rivalry will return to Sky and NOW in Spring 2027 e...
07/08/2026
Migration of more than 1,000 radio services delivers improved resilience, efficiency and sustainability
07 August 2026, Winchester, UK Arqiva, the UK's l...
07/08/2026
On 6 August, the European Commission and the SpaceRISE consortium concluded nego...
07/08/2026
The Traitors Ireland Uncloaked is also back with all the behind the scenes drama...
06/08/2026
The broadcaster's 14-race schedule begins in Iowa and ends in November with ...
06/08/2026
In-venue and creative video staffers at the professional and collegiate level ha...
06/08/2026
As media organizations consolidate teams, technology platforms, and content libr...
06/08/2026
Firmware updates introduce Dolby's next-generation picture engine, content-aware optimization, and new motion and ambient-light tools...
06/08/2026
TNT Sports will have wall-to-wall coverage of the upcoming FIBA Women's Bask...
06/08/2026
swXtch.io (Stand 5.MR13) has unveiled groundSwXtch for Audio over IP (AoIP), a software application that lets broadcasters and media organizations move audio in...
06/08/2026
At IBC2026, Riedel Communications (Stands: 10.A24, 10.A31, 10.A38) will bring modern media production to life with the Live Production Experience - a connected ...
06/08/2026
The first live-sports director to receive the prestigious honor, eight-time Emmy...
06/08/2026
NBC Sports will continue to present the Preakness Stakes on NBC and Peacock thro...
06/08/2026
Cobalt Digital (Stand 8.F90) continues to reinforce its commitment to delivering...
06/08/2026
Wave Central has promoted promotion Jeff Daubert to Director of Sales, Americas.
In his expanded role, Daubert will lead Wave Central's sales strategy and ...