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 ...

17/10/2026

Former NBC, Skydance Executive Seeks Linear TV Assets

Share Copy link Facebook X Linkedin Bluesky Email...

17/10/2026

Scripps Sports Network Brings Hit YouTube Show to Streaming TV

Share Copy link Facebook X Linkedin Bluesky Email...

17/10/2026

Net Insight Names Mario van Dahn as CFO

Share Copy link Facebook X Linkedin Bluesky Email...

17/10/2026

2026 NAB Show New York Exhibitor Insight: Imagine Communications

Share Copy link Facebook X Linkedin Bluesky Email...

17/10/2026

Oklahoma filmmaker Elijah Felkins launches crowdfunding campaign to shoot Kairath, his dystopian action feature about grief

Oklahoma filmmaker Elijah Felkins launches crowdfunding campaign to shoot Kairat...

17/10/2026

Secret Weapon Post Powers New Remote Workflows with DaVinci Resolve Studio

Secret Weapon Post Powers New Remote Workflows with DaVinci Resolve Studio Brie Clayton October 16, 2026 0 Comments Going remote: redefining what post...

17/10/2026

Danilo Prez Premieres New Work Honoring Architect Frank Gehry

Danilo P rez Premieres New Work Honoring Architect Frank Gehry Commissioned by the Herbie Hancock Institute, P rez performed The Ever-Changing World at its In...

16/10/2026

LA Clippers Relaunch ClipperVision for 2026-27 Season, Unveils DTC and OTA TV Plans

The LA Clippers have announced their local television plan for the 2026-27 seaso...

16/10/2026

NFL Media Chief Hans Schroeder Talks Fragmentation, ESPN-NFL Network Deal, and Potential for Early Rights Opt-Out

At sports-media summit, he describes the success of the one-year-old agreement a...

16/10/2026

Parks Associates, InterDigital Release White Paper on HDR and the Future of Video

Parks Associates, in partnership with InterDigital, has published a white paper ...

16/10/2026

Cisco Expands Work With Hawks, Cavaliers, Brooklyn Sports & Entertainment

Cisco is expanding its work with the Atlanta Hawks, Cleveland Cavaliers, and Brooklyn Sports & Entertainment (BSE) as the 2026-27 NBA season gets underway, prov...

16/10/2026

BMG Introduces Media Command Managed Media Operations Platform

Broadcast Management Group (BMG) has introduced Media Command, a private cloud broadcast platform that integrates recording, media asset management (MAM), chann...

16/10/2026

TNDV, GameTime Productions Expand REMI Role for Team Boxing League Season 4

TNDV and GameTime Productions have expanded their remote production responsibilities for Team Boxing League (TBL) for the league's recently completed fourth...

16/10/2026

SVG GameDay, Ep. 35: San Francisco 49ers Laura Johnson - Live Events by the Bay

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...

16/10/2026

BBright White Paper: Design Services. Deliver Channels.

Broadcast and streaming are converging around live media. Traditional broadcasters increasingly distribute their linear services through streaming platforms alo...

16/10/2026

DAZN, Guardians League Announce Free-to-View Surf Racing Partnership

DAZN and Guardians League, a new professional franchise surf racing series, have announced a multi-year global broadcast partnership. Guardians League events wi...

16/10/2026

Sobatech Group Uses Blackmagic Design for Remote Production of F4 Spanish Championship and Eurocup-3

Sobatech Group is producing live coverage of the F4 Spanish Championship and Eur...

16/10/2026

Disney, Dude Perfect Announce Creative Partnership

The Walt Disney Company and Dude Perfect have announced an integrated creative partnership. Dude Perfect will develop original content for its own channels insp...

16/10/2026

NBC Sports Set To Produce Games 1 and 4 as WNBA Finals Return to NBC for First Time Since 2002

Onsite studio show will accompany game productions in San Francisco and Atlanta ...

16/10/2026

SVG Sit-Down: Grass Valley CTO Ian Fletcher on the Strengths of Avora and Why DMF, MXL, and Third-Party Relationships are Important

Grass Valley s AMPP platform continues to grow in popularity, especially with th...

16/10/2026

FloSports, NLL Announce Exclusive Multiyear Global Streaming Partnership

FloSports and the National Lacrosse League (NLL) have entered a multiyear media partnership that makes FloSports the exclusive global streaming home of the NLL....

16/10/2026

PBR's Jason Jacquette on Producing the Team Series at UBS Arena

At PBR Teams Series: Maverick Days at UBS Arena in Belmont Park, NY, PBR Executive Producer Jason Jacquette took a few minutes with SVG to discuss how his team ...

16/10/2026

In Brilliant Color, Frida Breathes New Life, Love, and Expression Into Mexican Artist Frida Kahlo

(Suzanne Cordeiro/Shutterstock for Sundance Film Festival) By Patty Consolazio ...

16/10/2026

IK Multimedia unveil the ARC Studio+

Standalone calibration, automatic bass management & digital I/O The ARC Studio was a significant release for IK Multimedia, and was praised for offering a c...

16/10/2026

SSL launch the Bus Comp Classic

Classic compressor returns in 1U form There are few pieces of gear that have achieved the status held by the SSL Bus Compressor, and it's now officially...

16/10/2026

Zero-G introduce Elements Silentium

Latest cinematic instrument unveiled Zero-G say that their latest creation isn't your typical sample library or collection of instruments, but rather a ...

16/10/2026

Forma Labs Audio release Filament 1.2

Real-time MIDI orchestrator updated Forma Labs Audio have recently launched a significant update that brings some powerful new features to their real-time M...

16/10/2026

The Gauge: Poland | September 2026

The launch of the autumn programming schedules on traditional TV channels translated into a noticeable increase in total video viewership. Poles spent an averag...

16/10/2026

Netflix Announces Departure of Chief Content Officer

Share Copy link Facebook X Linkedin Bluesky Email...

16/10/2026

Public Media Receives $10M from Knight Foundation

Share Copy link Facebook X Linkedin Bluesky Email...

16/10/2026

Globecast Demonstrates Content Exchange Latest Capabiliti...

Globecast, a leading provider of media integration and managed services for the sports broadcast industry, will showcase the latest developments in Content Exch...

16/10/2026

Boston Conservatory Wind Ensemble Presents America at 250

Boston Conservatory Wind Ensemble Presents America at 250 The free event, taking place at Samuel Adams Park at Faneuil Hall, features a program of inspiring A...

16/10/2026

BMG Unveils Cloud-Based Media Command

Share Copy link Facebook X Linkedin Bluesky Email...

16/10/2026

Comcast Found Liable for $213M in Patent Infringement Suit

Share Copy link Facebook X Linkedin Bluesky Email...

16/10/2026

BBC News Channel Launches on YouTube in U.K. and U.S.

Share Copy link Facebook X Linkedin Bluesky Email...

16/10/2026

ON completes AV integration for Nubank Arte Lab - the lar...

ON Creative Visual Tech Provider has completed the audiovisual design and integration for Nubank Arte Lab, Brazil's largest permanent immersive art space. T...

16/10/2026

Beam Dynamics Appoints Brian Mauger as Regional Sales Man...

Beam Dynamics has appointed Brian Mauger as Regional Sales Manager, North America, strengthening its commercial team as the company expands across media, broadc...

16/10/2026

Secret Weapon Post Uses DaVinci Resolve Studio for Gregg Araki Films

Secret Weapon Post Uses DaVinci Resolve Studio for Gregg Araki Films Brie Clayton October 15, 2026 0 Comments Remote post house delivers I Want Your ...

16/10/2026

MultiDyne Introduces Complete SilverBack Fiber Camera Kits for Live Cinema Production

Share Copy link Facebook X Linkedin Bluesky Email...

16/10/2026

SMPTE Heads to South Africa in Expansion Push

Share Copy link Facebook X Linkedin Bluesky Email...

16/10/2026

ENCO Highlights AI Tools for Newsrooms, Local Ads at NAB Show New York

Share Copy link Facebook X Linkedin Bluesky Email...

16/10/2026

BMG Unveils Media Command

Share Copy link Facebook X Linkedin Bluesky Email...

16/10/2026

Adobe, NVIDIA Expand Their AI Partnership

Share Copy link Facebook X Linkedin Bluesky Email...

16/10/2026

Rick Kaplan Will Depart NAB

Share Copy link Facebook X Linkedin Bluesky Email...

16/10/2026

TNDV, GameTime Productions Expand REMI's Role With Team Boxing League

Share Copy link Facebook X Linkedin Bluesky Email...

16/10/2026

Matthews Introduces 40 inch Sliding Leg C-Stand 2-Pack

The Stand that started it all in a matched pair of the industry-trusted C-Stands The 2-Pack provides both in a choice of chrome or black finish...

16/10/2026

Wooden Camera Introduces New Cage and Accessory System fo...

New lineup brings professional rigging, lens support, power, and mounting flexibility to Sony's compact cinema camera Wooden Camera today announced a new p...

16/10/2026

Matysiak Paints Motor City in Neon with Astera

Cinematographer John Matysiak ( Old Henry, Winning Time, Big George Foreman ) brings a vivid breathlessness to the near-wordless film Motor City. An actio...

16/10/2026

Next Jazz Legacy Celebrates Five Years of Mentorship and Impact Across the Jazz Community

Next Jazz Legacy Celebrates Five Years of Mentorship and Impact Across the Jazz ...