
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 ...
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 ...
01/04/2026
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...
14/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
14/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
14/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
14/02/2026
Boston Conservatory Orchestra Helps Peter and Leonardo Dugan Complete Their Dre...
13/02/2026
Olympic Broadcasting Services (OBS) has provided an update on its adoption of the cloud as it continues on its journey to fully migrate to IT-based systems by 2...
13/02/2026
France T l visions has successfully launched France 2 UHD featuring Dolby Vision...
13/02/2026
Partnering with Worldwide Olympic Partner TCL, OBS deploys connected Athlete Mom...
13/02/2026
The men's figure skating long-form program is tonight, and it promises to be an exciting night for fans in the stands, fans at home, and even the production...
13/02/2026
With new partnership between the league and NBC, workflows distinguish more between live, broadcast sound
There'll be a lot new for the 75th NBA All-Star W...
13/02/2026
In-venue and creative video staffers at the professional and collegiate level have one major thing in common: the intensity and attention to detail ramps up dur...
13/02/2026
Teradek announces the launch of RF-X Auto Switcher, a revolutionary appliance designed to deliver flawless, uncompromised signal integrity for the world's m...
13/02/2026
Globecast and Synamedia announces that Pitch International (Pitch), the leading London-based sports marketing agency, has gone live with cloud-based distributi...
13/02/2026
Ratings Roundup is a rundown of recent rating news and is derived from press rel...
13/02/2026
Far from the action in the snow and on the ice, the team controls the production...
13/02/2026
The Daytona 500 is called The Super Bowl of Racing for a reason. Whether it's the culmination to five days of action on the track, the sheer size and scop...
13/02/2026
For the Milano Cortina Games, Olympic Broadcasting Services (OBS) is delivering more than 6,500 hours of content, with more than 900 hours of live action, sprea...
13/02/2026
After a 24-year absence, NBC Sports returns to NBA All-Star Weekend with a full ...
13/02/2026
By Jessica Herndon
We may have just wrapped an unforgettable 2026 Sundance Film...
13/02/2026
By Jessica Herndon
One of the most exciting things about the Sundance Film Fest...
13/02/2026
This Wednesday in Los Angeles, Spotify brought together a group of podcast creat...
13/02/2026
Yesterday, Spotify and LoveShackFancy hosted a Galentine's and Gents Lunch a...
13/02/2026
The upgrade to a Project 25 network provides state agencies communicating on the Statewide Law Enforcement Radio System flexibility to tailor the network to the...
13/02/2026
Riedel Communications has officially opened a new office in Kuala Lumpur, Malaysia, marking a strategic expansion of its global Customer Success and IT software...
13/02/2026
Two of ES Broadcast Hire's longest-serving employees recently celebrated a decade working for the company.
Annie Breislin, Operations Manager, and Charles ...
13/02/2026
Disguise, the award-winning technology company powering global experiences, today unveils a new 8,000-square-foot office and Experience Center in Atlanta, creat...
13/02/2026
At BSC Expo 2026, Mavis announced full support for the Accsoon SeeMo series of iOS camera adapters across Mavis Camera and Mavis Monitor apps. This new integrat...
13/02/2026
Executing technically ambitious live streams, virtual productions, and immersive media today requires talent, creativity, and the right supporting technology. L...
13/02/2026
Michal Miskin-Amir, Jonathan Stanton and Bobby Bond to lead technical advances amid surge in demand for LTN's IP video transport services as satellite capac...
13/02/2026
Grass Valley, the pioneering media and entertainment technology innovator, has won a competitive NATO-wide tender to provide the new camera system for NATO'...
13/02/2026
Wireless IP intercom underpins agile, multi-location live production workflows
Digital Azul, the independent production powerhouse specialising in complex liv...
13/02/2026
Actus Digital, a LiveU company, will unveil major new enhancements to its Actus X Intelligent Monitoring Platform at NAB Show (LiveU booth N1740), reinforcing i...
13/02/2026
Globecast, a worldwide leader in broadcast services, and leading video software provider, Synamedia, today announced that Pitch International (Pitch), the leadi...
13/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
13/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
13/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
13/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
13/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
13/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
13/02/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
13/02/2026
What can I watch on UKTV this week?What can I stream on U this week?
This guide highlights romantic dramas for Valentine's Day, alternative relationship t...
13/02/2026
New RT series tells stranger-than-fiction stories of Irish con artists
Swindlers airs Wednesday 18 February, 9.35pm on RT One and RT Player
Swindlers, a...
12/02/2026
Chyron unveils PRIME 5.3, the latest software release of the company's powerful engine for live production graphics. PRIME 5.3 delivers the first official i...
12/02/2026
The vendor's VP of Product Management explains how quality assurance, monito...
12/02/2026
LTN announces the appointment of three experienced executives to lead its new Technology organization: Michal Miskin-Amir as EVP and Head of Technology, Jonatha...
12/02/2026
Riedel Communications has officially opened a new office in Kuala Lumpur, Malays...