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 ...

01/06/2026

Dolby Sets the New Standard for Premium Entertainment at CES 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 Flex LTS Delivers Smarter Search, Faster Editing, and an AI-Ready Foundation for Modern Media

Dalet, a leading technology and service provider for media-rich organizations, t...

01/05/2026

NBCUniversal's Peacock to Be First Streamer to Integrate Dolby's Full Suite of Premium Picture and Sound Innovations

January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...

01/04/2026

DOLBY AND DOUYIN EMPOWER THE NEXT GENERATON OF CREATORS WITH DOLBY VISION

January 4 2026, 18:00 (PST) DOLBY AND DOUYIN EMPOWER THE NEXT GENERATON OF CREATORS WITH DOLBY VISION Douyin Users Can Now Create And Share Videos With Stun...

06/03/2026

LTN, MediaKind Partner on Industry Transition From C-Band to IP

Share Copy link Facebook X Linkedin Bluesky Email...

06/03/2026

Roku Unveils 'Roklue' Interactive Content Discovery Feature

Share Copy link Facebook X Linkedin Bluesky Email...

06/03/2026

FCC Releases Tentative Agenda for March Open Meeting

Share Copy link Facebook X Linkedin Bluesky Email...

06/03/2026

ESPN to Air Animated Version of Capitals vs. Rangers NHL Game

Share Copy link Facebook X Linkedin Bluesky Email...

06/03/2026

Tedial to Highlight AI-Fueled Media Lifecycle at 2026 NAB Show

Share Copy link Facebook X Linkedin Bluesky Email...

06/03/2026

esRadio Advances with DHD RX2 Audio Production Consoles

Spanish FM and online broadcaster esRadio has selected DHD RX2 audio production consoles for use at its studio headquarters in Madrid. Part of the Libertad Digi...

06/03/2026

LucidLink launches Connect to extend instant access to da...

LucidLink, the cloud-native file streaming platform for instant, secure access to large files, today announced LucidLink Connect, a new solution that enables re...

06/03/2026

BeckTV Launches BeckFlow at 2026 NAB Show While Highlight...

At the 2026 NAB Show, BeckTV, a premier systems integrator for the broadcast industry, is launching BeckFlow, the first web-based schematic documentation platfo...

06/03/2026

Net Insight sets a New Standard for Live Media Operations...

At NAB Show 2026, Net Insight introduces Nimbra Live Intelligence defining a new category and setting a new standard for live operations: the Open Media Platfor...

06/03/2026

Interra Systems Focuses on StreamingFirst QC Monitoring a...

At the 2026 NAB Show, Interra Systems will showcase its latest advancements in automated QC, real-time monitoring, and captioning reinforcing its position as ...

06/03/2026

Riedel Communications at 2026 NAB Show

At the 2026 NAB Show, Riedel Communications opens with a clear message to the North American market: production technology does not have to be complex. This yea...

06/03/2026

LTN and MediaKind partner to deliver integrated reliable...

New partnership combines on-prem video processing with reliable IP transport to support the transition from C-Band satellite to IP distribution LTN and MediaKi...

06/03/2026

Death of John McHugh

We are deeply saddened to hear the very sad news of the death of our friend and colleague, John McHugh. John was an exceptionally talented creative leader who s...

06/03/2026

A Nation Holds Its Breath Again

First exclusive look at RT 's promo as Ireland prepare to take on Czechia Every Moment, Every Generation https://youtu.be/2ijo96EadLU 36 years after Geor...

06/03/2026

March 05, 2026

A new clue to how the body detects physical force Scripps Research scientists offer new insight into how the body detects light touch and how disruptions in tha...

05/03/2026

SVG GFX Forum Draws 250+ Industry Pros To Talk Creative Philosphy, AR/XR, Future of Live Sports Graphics

More than 250 sports-graphics professionals packed into The Cutting Room in New ...

05/03/2026

Cosm Atlanta Set to Open at Centennial Yards on June 10

Cosm announces that it will open its third immersive entertainment venue at downtown Atlanta's Centennial Yards on June 10, 2026. Its first public event wil...

05/03/2026

The CW Network to Broadcast Six Banana Ball Games During 2026 Season

Following last year's broadcast television debut, The CW Network is growing its partnership with the Savannah Bananas, announcing that it will be the exclus...

05/03/2026

AT&T Named Founding Partner and Official Connectivity Provider of TGL Presented by SoFi

TGL presented by SoFi, the primetime, men's team golf league, announces AT&T...

05/03/2026

Netflix Goes Live with Ateme's TITAN

Ateme, which specializes in video compression software, announces that it has entered into a multi-year agreement with Netflix for the deployment of its TITAN L...

05/03/2026

NEP Launches Software-Based OB Unit for Scalable Live Production Across Europe

As part of its strategy to deliver flexible and scalable media solutions, NEP Europe, part of NEP Group, has redesigned an outside broadcast (OB) unit to help b...

05/03/2026

Net Insight's Nimbra Edge and Nimbra 400 Now Verified for YouTube Live

Net Insight's Nimbra Edge and the Nimbra 400 series are now included in YouTube's Live verified encoders list. This confirms that the solutions have bee...

05/03/2026

Audinate Launches Dante Director Professional: Enterprise-Grade Management Platform for Distributed AV Networks

Audinate, the creator of the Dante audio networking platform, announces the laun...

05/03/2026

LiveU Marks First Large-Scale Global Deployment of AI-Driven LIQ at Winter Games

LiveU announces the first large-scale deployment of its AI-driven LiveU IQ (LIQ) technology at a global, multi-venue sporting event, setting a new benchmark for...

05/03/2026

SportsEngine Play to Stream 7 on 7 National Football Recruiting Tournament March 7-8

SportsEngine Play, a first-of-its-kind subscription streaming service for captur...

05/03/2026

SVG Students To Watch: Madison McCarter, Michigan State University

The senior from small-town Pennsylvania has had a huge impact on the Spartans' B1G Student U program In the live-sports-video industry, the future is brigh...

05/03/2026

ESPN, Disney, Pixar Team Up With NHL for Inside Out Classic' Animated Alt-Cast on April 5

Real-time animated presentation of Capitals-Rangers game blends tracking data, o...

05/03/2026

The Silicon Bowl Effect: How Big Tech is Reinventing the Sports Fan Experience

With Super Bowl LX taking place in Santa Clara, all eyes were not only on the field - but on the future of fandom itself. New technologies are being introduced ...

05/03/2026

World Baseball Classic 2026: MLB Network Provides World-Feed Infrastructure to Venues, Broadcasters

The network aims for a uniform production while accommodating tech differences i...

05/03/2026

World Baseball Classic 2025: FOX Sports Deploys World Feed Plus,' Adds Studio Presence for Semis and Final

MLB Network produces the host broadcast, and FOX layers in cameras, studio prese...

05/03/2026

Film Festival Watch: See These 18 Sundance Institute-Supported Docs at the 2026 True/False Film Fest

Barbara Hammer appears in Barbara Forever by Brydie O'Connor, an official se...

05/03/2026

Spotify's Creator Milestone Awards Honor the Latest Slate of Record-Breaking Podcasts

A little over a year ago, Spotify introduced the quarterly Creator Milestone Awa...

05/03/2026

SBS and Mint Pictures to chronicle the Bondi terror attack in major feature documentary

SBS and Mint Pictures to chronicle the Bondi terror attack in major feature docu...

05/03/2026

Winter Olympic stars return to the ice for ISU World Figure Skating Championships broadcast live on SBS

Winter Olympic stars return to the ice for ISU World Figure Skating Championship...

05/03/2026

Rohde & Schwarz enables rapid validation of next-gen Wi-Fi 8 networking platforms, including 5x5 MIMO capabilities

Rohde & Schwarz enables rapid validation of next-gen Wi-Fi 8 networking platform...

05/03/2026

Rohde & Schwarz acquires Software Radio Systems (SRS), specialists in software defined mobile communications solutions

Rohde & Schwarz acquires Software Radio Systems (SRS), specialists in software d...

05/03/2026

The Next Frontier of Quality Control - Verifying Content...

Quality control (QC) has long been a gatekeeper of technical fidelity. Editors and technicians have adhered to a simple, disciplined checklist: bitrate, resolut...

05/03/2026

Synamedia and Asport deliver global-scale streaming for G...

Leading video software provider Synamedia today announced it has partnered with Swiss sports technology specialist, Asport to deliver global live streaming for ...

05/03/2026

Advanced Systems Group Promotes Gretchen Taipale to Vice...

Advanced Systems Group, LLC (ASG), a technology and services provider for media creatives and content owners, announced the promotion of Gretchen Taipale to Vic...

05/03/2026

Clear-Com Supplies Cloud-Based Communications System for...

Clear-Com has provided Gen-IC virtual intercom, its cloud-based voice communications system for SaxaVord Spaceport, the first fully licensed vertical launch s...

05/03/2026

Hollywood Professional Association Concludes the 2026 HPA...

The Hollywood Professional Association (HPA) concluded the 2026 HPA Tech Retreat, convening more than 800 industry leaders, technologists, creatives and executi...

05/03/2026

LynTec 20 AMP Dual Output DMX Relay Now Shipping

LynTec, a leading manufacturer of electrical power control solutions for professional audio, video, and lighting systems, today announced that its new Dual DMX ...

05/03/2026

Snicket Labs Partners with ES Broadcast to Expand Access...

Snicket Labs is pleased to announce a new distribution partnership with ES Broadcast for its award winning solutions, Match and Enrich. Under the agreement, ES...

05/03/2026

LiveU Marks First Large Scale Global Deployment of AI Dri...

LiveU today announced the first large-scale deployment of its AI-driven LiveU IQ (LIQ ) technology at a global, multi-venue sporting event, setting a new benchm...

05/03/2026

CMAT wins RT Choice Music Prize Irish Album of the Year 2025

Celebrating 21 Years of the RT Choice Music Prize RT Choice Music Prize In association with IMRO and IRMA RT Choice Music Prize Irish Album of the Year 2...