
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 ...
06/09/2026
June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...
04/08/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
09/07/2026
Blackmagic Design Announces New UltraStudio Express 3G
Brie Clayton July 9, 2026
0 Comments
New extremely portable capture and playback models with 3G...
09/07/2026
Miri Introduces Self-Service Cellular Data and SIM Card Management Platform for ...
09/07/2026
Riedel Communications today announced that the Hong Kong Jockey Club (HKJC), one of Asia's most prestigious horse racing organizations, has significantly up...
09/07/2026
Leading North American mobile production facility provider standardizes on Grass Valley's fully IP-native K-Frame production switchers for its fleet of next...
09/07/2026
Miri Technologies Inc. is rolling out a new online portal that provides customers and resellers with self-serve management tools and usage analytics for the com...
09/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/07/2026
Cinematographer Aakash Subramaniam, WICA faced a conceptual challenge: how could he make a film about dying that doesn't feel like one? The film, Our Weird...
09/07/2026
This GFN Thursday brings more games, more power and more ways to play on GeForce NOW.
The cloud gaming service is expanding with a new GeForce RTX 5080-powere...
08/07/2026
The end of the Big A' marks the demise of one more iconic sports venue and its signature sound
After 132 years as one of the preeminent horse-racing track...
08/07/2026
Memphis Athletics and Learfield have signed a long-term renewal to their 25-year relationship, which sees Learfield's Tiger Sports Properties continue repre...
08/07/2026
MLB All-Star Week returns to Philadelphia for the first time in 30 years as Amer...
08/07/2026
Former Wall Street Video event expanded to include all Enterprise sectors
SVG Enterprise has announced the inaugural Enterprise Video Summit, taking place Oct....
08/07/2026
An offseason project enhanced eight video displays around the venue in time for ...
08/07/2026
Kaseya Center has a ton of new features that weren't available to the indust...
08/07/2026
The International Federation of Film Critics (FIPRESCI) and the Sundance Film Festival are pleased to announce the establishment of a FIPRESCI jury beginning wi...
08/07/2026
Latest analogue-emulation plug-ins revealed
Universal Audio have just added two new analogue-emulation plug-ins to their DSP-powered UAD line-up. Developed ...
08/07/2026
Turn any audio loop into a playable kit
Pitch Innovations have recently introduced an interesting new tool that's capable of creating playable kits from...
08/07/2026
Adds new keyboard-split function
MonkeyC have recently launched an update that overhauls their powerful software sampler. Described as the sampler that mad...
08/07/2026
Four new delay algorithms & dual-engine functionality
Strymon have just announced that the much-anticipated MX version of their hugely popular delay pedal i...
08/07/2026
Well over half of Australia have tuned in to watch the FIFA World Cup on SBS
7 July, 2026
Media releases
Australia's Round of 32 match against Egypt a...
08/07/2026
SBS and Koorie Heritage Trust announce three-year partnership to celebrate First...
08/07/2026
Rohde & Schwarz and China Mobile Research Institute jointly demonstrate generati...
08/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/07/2026
Collaboration demonstrates how managed IP distribution and cloud-based syndication workflows can support live television at national scale
Fox Television Stati...
08/07/2026
New ARRI ALEXA 35 Live Xtreme camera seamlessly delivers up to 8x HFR via SDI fo...
08/07/2026
Did You Know? Redshift for Cinema 4D: The Power of the Distance Node
Marc Potocnik July 8, 2026
0 Comments
The Did You Know? Redshift for Cinema 4D ...
08/07/2026
Lightware is introducing the biggest update yet to the LARA Wizard Touchpanel configuration experience, designed to help integrators work faster while deliverin...
08/07/2026
DMC Production has turned to Calrec in its quest to redefine outside broadcasting with a flexible approach to live production that reverse engineers the convent...
08/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
08/07/2026
Foundry today announced that Reel FX Animation Studios has adopted Flix to standardize their pipeline and streamline processes across departments. Flix is a vis...
08/07/2026
The right team. The right time.' How The Killings at Parrish Station stuck t...
08/07/2026
Australians in Film and Screen Australia launch FUTURE VISION Forward to elevate...
08/07/2026
Film follows the courageous fight for justice by survivors of Ireland's Magdalene Laundries & Mother and Baby Homes
TESTIMONY airs Wednesday 22 July at 9...
08/07/2026
NVIDIA Nemotron 3 Ultra is offering leading performance at lower cost than top c...
07/07/2026
Applications are now open for the Validation Booster, a six-month acceleration programme supporting journalists, media organisations, content creators, media in...
07/07/2026
The Universal Talent Identifier (HAND) has issued HAND IDs to 50 top prospects ahead of the 2026 MLB Draft, including consensus top-ranked players Roch Cholowsk...
07/07/2026
Cisco and the McLaren Mastercard Formula 1 Team have announced an extension of their partnership, expanding the scope from networking and communications to incl...
07/07/2026
LucidLink has announced a workflow integration with Adobe Frame.io that gives production teams unified access to Frame.io projects alongside supporting producti...
07/07/2026
Chyron has announced the appointment of Ahmed Magd as Sales Director for the Middle East. Magd joins from previous senior commercial roles at Riedel Communicati...
07/07/2026
Leader Electronics of Europe has announced that its PHABRIX Qx rasterizer and Le...
07/07/2026
eCLUTCH has announced it has acquired broadcast rights to the Esports World Cup 2026 for EMEA and MENA, covering the Middle East, Africa, the Balkans, Sweden, a...
07/07/2026
Riedel Communications and ARRI supported ORF's host broadcast of the Eurovis...
07/07/2026
ARRI has announced the ALEXA 35 Live Xtreme, a camera that adds high frame rate ...
07/07/2026
LiveU will exhibit at IBC 2026 (Stand 7.C24), showcasing the LU900Q Intelligent Production Unit, expanded Sony collaboration, and additions to its open IP-video...
07/07/2026
Telemundo's coverage is packaged with Multiview, Catch Up with Key Plays, in...