
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 ...
09/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/04/2026
Yospace exceeded 10 billion dynamically stitched ads in a single month, reaching 11.6 billion as ad-supported streaming surged. Driven by a packed global sports...
09/04/2026
Bitmovin has expanded its Live Encoding and Observability solutions to provide true end to end, real time insights across live streaming workflows, from encodin...
09/04/2026
Leyra has announced the launch of Icelandic public broadcaster R V's streaming service on Samsung and LG Smart TVs. R V is the first public broadcaster to d...
09/04/2026
3Play Media, a global leader in video accessibility and localization, today announced an AI Dubbing solution purpose-built for YouTube creators. The company, wh...
09/04/2026
Big Blue Marble, a provider of broadcast-grade, cloud-native video solutions, has been recognized as an Amazon Web Services (AWS) Managed Services Provider (MSP...
09/04/2026
The Professional Darts Corporation (PDC) has officially launched its revamped global streaming service, PDC TV, in collaboration with Cleeng and sports technolo...
09/04/2026
Cleeng, the Subscriber Retention Management (SRM ) pioneer, today announced a raft of new AI agents for its AI Assistant to accelerate decision-making and autom...
09/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/04/2026
New Charging, Connectivity, and Mounting Solutions Now Available
LAS VEGAS, APRIL 8, 2026 Pliant Technologies will highlight a range of new accessories at th...
09/04/2026
As live production continues its shift to IP, the challenge is no longer adoption it's reliability. At NAB Show 2026 (Booth W2033), Media Links will demon...
09/04/2026
QuickLink, a leading provider of award-winning video production and remote guest contribution solutions, launches its new AI-powered add-on for its StudioPro p...
09/04/2026
The Hive Group has published a new white paper, No Safe Harbor: Why the FCC's Upper C-Band Auction Demands Early Action from Broadcasters ahead of NAB Sho...
09/04/2026
Saranyu Technologies today announced the renewal of its Optimizer VoD subscription with VisualOn. The announcement coincides with NAB Show 2026, taking place Ap...
09/04/2026
Doireann N Ghlac in returns as presenter, with the first episode airing this Friday at 8.30pm on RT One and RT Player
The beloved walking series Tracks & T...
09/04/2026
A timeless story of grit, faith and rebellion takes center stage as Samson: A Ty...
09/04/2026
New technique for synthesizing branched molecules could accelerate the development of future medicines Scripps Research chemists solve a longstanding problem in...
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...