
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 ...
08/04/2026
The deadline to enter the 18th Annual SVG College Sports Media Awards in association with NACDA is rapidly approaching! Submit your entries to this year's c...
08/04/2026
The Pittsburgh product helps lead more than 100 annual ESPN broadcasts as part o...
08/04/2026
Dynamic ad insertion, AI-based technologies, programmatic advertising are some o...
08/04/2026
Seven Fellows Selected for Second Year of Residency in Honor of Social Justice L...
08/04/2026
On March 7, Bad Bunny made history with his first-ever performance in Asia, taki...
08/04/2026
El 7 de marzo, Bad Bunny hizo historia con su primera presentaci n en Asia, subi...
08/04/2026
New channel strip plug-in revealed
The latest plug-in to be added to the Fuse Audio Labs line-up emulates a selection of vintage hardware units, combining c...
08/04/2026
Guitar & bass multi-effects software overhauled
Blue Cat Audio's flagship guitar and bass multi-effects software has recently received a significant upd...
08/04/2026
PanNoir mixer integration, Dolby Atmos Renderer & more
Merging Technologies have just launched Pyramix 16, the latest major update to their renowned DAW sof...
08/04/2026
Applicable Products Part number Description
QUARTZ-22-LTE (EU) Dual Port Dual SIM LTE Router (EU)
QUARTZ-COMPACT-11-LTE (EU) Single Port Compact LTE ...
08/04/2026
The September 19, 2025 YEP Newsletter highlights a group visit to the Academy Museum of Motion Pictures, where participants explored exhibits showcasing the art...
08/04/2026
The L3Harris HBTSS satellite is proven on orbit, successfully demonstrating trac...
08/04/2026
Image Credit: NASA. Artist rendering of a space communications satellite in orbit, representative of the resilient, multiband infrastructure supporting mission ...
08/04/2026
Latest evaluation validates image quality, Inertial Navigation System performance and long-range tracking in operational flight conditions....
08/04/2026
New Gracenote study finds behavioral change well underway, but trust in AI-gener...
08/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/04/2026
Integration eliminates ingest bottlenecks by ensuring content is immediately usable across cloud and hybrid editorial workflows. See it at NAB 2026.
Nevada Cit...
08/04/2026
Dalet, a leading technology and service provider for media-rich organizations, today announced the commercial availability of Dalia, its media-aware, agentic AI...
08/04/2026
Leading video software provider Synamedia today announced Senza Ignite, a cloud-based platform that transforms existing connected devices through a single firmw...
08/04/2026
Modernised architecture increases operational control and agility, while reducing cost and simplifying nationwide media transport across affiliates and news bur...
08/04/2026
Company to Feature DMX Dual Relay, High-Density 48-Channel Relay Panels, and New Private Label Power Program
LynTec, a leading manufacturer of innovative ele...
08/04/2026
Broadcasting Center Europe (BCE), a European media technology and services partner, today announces a technology partnership with BCNEXXT, a Netherlands-based c...
08/04/2026
Encompass Digital Media today announced the expansion of its Master Control Room (MCR) facility in Riga, Latvia, establishing it as one of the most advanced and...
08/04/2026
Leading video solutions provider Synamedia is back at The 2026 NAB Show with innovations that connect tomorrows audiences today. On display will be a range of t...
08/04/2026
COW Jobs: Director Needed for WWII Indie Docudrama
Brie Clayton April 8, 2026
0 Comments
Director Needed for WWII Indie Docudrama
March 17, 2026COW ...
08/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/04/2026
Marshall Electronics introduces its latest POV camera with the new CV376 Compact NDI |HX3 HDMI POV Camera at NAB 2026 (Booth C8339). Designed for versatile 4K c...
08/04/2026
Zixi, a leader in live video delivery and workflow orchestration, enables interoperable live video workflows across multi-vendor environments, helping broadcast...
08/04/2026
All episodes available on Thursday 30 April on Sky Atlantic and NOWWednesday 8 A...
08/04/2026
Back to All News
Agent from Above' Celebrates Divine Ascent to Global Rank...
08/04/2026
Back to All News
Official Poster Revealed for My Two Cents, the New Animated Se...
08/04/2026
ICG is gearing up for a busy day on 14th May in Manchester.
First up, we'll be joining the Northern Marketing Festival as one of the event's marketing ...
08/04/2026
The Teatro Col n in Buenos Aires is not a venue that tolerates compromise. Built in 1908 and routinely ranked among the worlds finest concert halls, it has an a...
08/04/2026
Young Forever: The Death of Ageing? airs Monday 13 April and 20 April on RT One and RT Player
Around the world, the race to beat ageing is on. From cutting ...
08/04/2026
Scripps Research scientists uncover new mechanism cancer cells use to survive DNA damage Discovery reshapes understanding of how tumor cells repair broken DNA, ...
07/04/2026
Ikegami USA will launch a refinement to the UHK-X700 and UHK-X750 3-CMOS -in. UHD cameras in the UNICAM XE series plus two new 7-in. viewfinders at NAB 2026 in...
07/04/2026
The NAB Leadership Foundation and NAB PILOT will host a career mixer for technology students at NAB Show 2026 on April 18, 5-6:30 p.m., North Hall, Room N225/22...
07/04/2026
Audinate Group Limited and Futuresource Consulting have published results from a...
07/04/2026
Eluvio has announced the commercial availability of its Content Fabric Bucharest...