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 ...

07/10/2026

Dalet Flex LTS Delivers Smarter Media Operations from Ingest to Distribution

Dalet, a leading technology and service provider for media-rich organizations, today announced the latest Long-Term Supported (LTS) release of Dalet Flex. Build...

06/09/2026

Dolby and MagentaTV Bring Fans Closer to the FIFA World Cup 2026 in Germany with Dolby Vision and Dolby Atmos

June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...

04/08/2026

Dalet Announces Commercial Availability of Dalia, Bringing Media-Aware Agentic AI to Enterprise Productions

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

31/07/2026

SVG Sit-Down: NHL's Steve Mayer on Building a Centralized Production Operation From Scratch

With an emphasis on local, the league is looking beyond the initial four teams t...

31/07/2026

Reflecting on the 2026 Summer Season of Our Sundance Institute Labs

The 2026 Sundance Institute Directors Lab fellows in Estes Park, Colorado (Photo by Gabe Rovick) Dear Friends, This has been an extraordinary year for our ar...

31/07/2026

Audiocube launch Audiocube Space

Offers 360-degree sound placement in any DAW Audiocube have just announced the launch of a new plug-in that embeds a complete 3D acoustic environment inside...

31/07/2026

Sonarworks expand SoundID VoiceAI library

10 new Chinese C-Pop voices introduced While Sonarworks are best known to many for their room-correction software, their product range also includes an inno...

31/07/2026

PSPaudioware release PSP BBDelay

Reimagines the vintage BBD sound character PSPaudioware have now officially launched the new delay plug-in that they were previewing at GearExpo UK. Said to...

31/07/2026

Savannah Bananas Hits a Broadcast Home Run with Calrec

The Savannah Bananas has built its reputation on refusing to play baseball by traditional rules, and the team's production arm Banana Ball TV (BTV) has draf...

31/07/2026

How Valuable Is TV to Smaller, Independent Cable Operators?

Share Copy link Facebook X Linkedin Bluesky Email...

31/07/2026

Early Registration Opens for the 2026 SMPTE Media Techno...

SMPTE, the home for media professionals, technologists and engineers, today opened early registration for the 2026 Media Technology Summit (MTS) and announced i...

31/07/2026

Central Christian Church Connects Remote Production Teams...

Clear-Com announced that Central Christian Church has transformed communication across its live production operations by implementing Clear-Com's LQ Seri...

31/07/2026

Haivision To Feature Makito ONE, Falkon X4 At IBC 2026

Share Copy link Facebook X Linkedin Bluesky Email...

31/07/2026

ABC Stations Tout Community Support for License Renewals

Share Copy link Facebook X Linkedin Bluesky Email...

31/07/2026

Finalists Announced for IBC2026 Innovation Awards

Share Copy link Facebook X Linkedin Bluesky Email...

31/07/2026

IBC2026 Innovation Awards finalists unveiled honouring co...

IBC has unveiled the finalists for the IBC2026 Innovation Awards, recognising collaborative projects from around the world that solve real-world challenges and ...

31/07/2026

From focus puller to colourist

From focus puller to colourist Caroline Shawley July 30, 2026 0 Comments Ana Mar a Ormaza shares her story of instinct, storytelling and finding a cre...

31/07/2026

Amazon Prime Documentary Andata e Ritorno Relies on Blackmagic Design

Amazon Prime Documentary Andata e Ritorno Relies on Blackmagic Design Brie Clayton July 30, 2026 0 Comments DaVinci Resolve Studio and Blackmagic Clou...

31/07/2026

Krotos Launches Video to Sound Plugin for DaVinci Resolve

Krotos Launches Video to Sound Plugin for DaVinci Resolve Brie Clayton July 30, 2026 0 Comments AI-assisted workflow helps editors add synchronized, p...

31/07/2026

Half-Year Report on SES's Liquidity Contract

Luxembourg, July 31, 2026 - Pursuant to the liquidity contract entered into by SES with BNP Paribas as of 7 April 2026, please see the below update on the progr...

31/07/2026

SES Publishes FY2025 EU Taxonomy Restatement

Luxembourg, July 31, 2026 - SES today published a restatement of its FY2025 EU Taxonomy (Article 8) disclosure. The restatement updates the FY2025 EU Taxonomy d...

31/07/2026

Mercedes-Benz Ireland returning as the official car partner of The Traitors Ireland

RT Commercial has today announced Mercedes-Benz Ireland will return as the offi...

31/07/2026

RT Supporting the Arts is supporting 15 cultural events nationwide this August

RT Supporting the Arts is delighted to spotlight a diverse range of arts, culture and heritage events taking place across Ireland this August. From major festi...

30/07/2026

CP Communications Provides Broadcast Support for 2026 MLB All-Star Week in Philadelphia

CP Communications provided RF audio, RF video, communications, RF coordination, ...

30/07/2026

OpenDrives Named to 2026 CRN Storage 100 List

OpenDrives has been included in CRN's 2026 Storage 100 list in the Software-Defined Storage category. The annual list, selected by the CRN editorial team, r...

30/07/2026

SES Selected by LATAM Airlines for Multi-Orbit Satellite Connectivity

LATAM Airlines has selected SES to provide multi-orbit inflight connectivity to its fleet of Airbus and Embraer aircraft. More than 60 aircraft - including Airb...

30/07/2026

Tagboard Launches Producer API with Elgato Stream Deck Integration

Tagboard has launched the Producer API, an open interface that allows key commands in Tagboard's live production environment to be triggered from external d...

30/07/2026

FOX Sports Adds Del Mar to Horse Racing Coverage in Multi-Year Deal

FOX Sports and the New York Racing Association (NYRA) have announced a multi-year agreement with Del Mar Thoroughbred Club that will make FOX Sports the exclusi...

30/07/2026

ABC Commercial Launches Four FAST Channels on LG Smart TVs

ABC Commercial has launched four free ad-supported streaming television (FAST) channels on LG Smart TVs across North America, Great Britain, and select countrie...

30/07/2026

Six Kings Slam Returns to Netflix in October with Sinner, Alcaraz, Djokovic

The Six Kings Slam exhibition tennis tournament will return to Riyadh on October 21, 22, and 24, streaming live on Netflix at no additional cost to subscribers....

30/07/2026

Central Christian Church Uses Clear-Coms Gen-IC to Connect Remote Production Teams

Central Christian Church in Mt. Vernon, Illinois has deployed Clear-Com's LQ...

30/07/2026

Blackmagic Design Releases UltraStudio Express 3G Capture and Playback Devices

Blackmagic Design has released the UltraStudio Express 3G family, a pair of USB4 capture and playback devices compatible with Mac, Windows, and Linux computers ...

30/07/2026

ESPN Secures Media Rights to Womens Pro Baseball League

ESPN has reached a media rights agreement with the Women's Pro Baseball League (WPBL), making ESPN the national streaming home of the league's 2026 seas...

30/07/2026

Most Valuable Promotions and Professional Fighters League Merge

Most Valuable Promotions (MVP) and the Professional Fighters League (PFL) have announced a merger that will operate under the MVP banner. PFL CEO John Martin wi...

30/07/2026

Columbus Blue Jackets To Simulcast TV and Radio Broadcasts Beginning 2026-27

The Columbus Blue Jackets will simulcast all game broadcasts across television and radio beginning with the 2026-27 NHL season. Under the new format, the televi...

30/07/2026

TMRW Sports Selects Populous To Design Professional Flag Football Stadium

TMRW Sports has selected Populous as architect for a purpose-built stadium for its professional flag football league, being developed in partnership with the NF...

30/07/2026

SiriusXM Launches Sports Pass Subscription at $5 per Month

SiriusXM has announced SiriusXM Sports Pass, a new subscription plan launching September 1 that bundles the company's sports audio programming into a single...

30/07/2026

SVG Cloud & Content Workflows Summit Focuses on Live Production, Content Management, AI

Leagues, broadcasters, and technologists gather to tackle cloud economics, distr...

30/07/2026

AWSs Jason Dvorkin on the Power of AWS Elemental Inference, Agentic AI in Live Sports Production

A major player in the cloud-based solutions, Amazon Web Services (AWS) has conti...

30/07/2026

Minnesota Timberwolves Ink Local-Media-Rights Deal With DAZN

The NBA will provide production for all local game broadcasts, including pregame and postgame coverage...

30/07/2026

Cosm Detroit To Open September 10

Cosm will open its fourth immersive sports and entertainment venue in downtown Detroit on September 10. Located at 25 Cadillac Square, adjacent to Campus Martiu...

30/07/2026

NFL Network Added to ESPN App Beginning July 30

NFL Network will be available on the ESPN App beginning July 30 for Unlimited plan subscribers. The addition brings NFL Network's live games, studio program...

30/07/2026

NEP Platform Adds Riedels SimplyLive Production Suite

NEP Group has added Riedel's SimplyLive Production Suite to NEP Platform, giving customers access to the live production software through NEP's orchestr...

30/07/2026

SUNDANCE INSTITUTE NAMES TRISTA SCHROEDER GENERAL COUNSEL & CHIEF OPERATING OFFICER

LOS ANGELES, CA, July 30, 2026 - The nonprofit Sundance Institute today announce...

30/07/2026

Waves release Atlas Reverb

A new take on classic algorithmic reverbs Waves have just introduced a new flagship algorithmic reverb plug-in that offers the company's take on the ico...

30/07/2026

Arturia's Summer Sale now live

Save up to 30% on virtual instruments & plug-ins Arturia have recently launched their annual Summer Sale, which sees discounts of up to 30% applied across a...

30/07/2026

SSL unveil the Odyssey console

ActiveAnalogue technology powers new flagship modular console A year on from the launch of the Oracle, SSL have revealed a new flagship console which they s...

30/07/2026

DT 275 Pro from beyerdynamic

Up to 22dBA of passive attenuation The latest arrival to the beyerdynamic range introduces a new compact monitoring headphone that's been designed to ta...

30/07/2026

Apprenticeship success at SGL Carbon in Meitingen

As part of its traditional graduation ceremony, SGL Carbon honored the achievements of a total of twelve young professionals who successfully completed their ap...