
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 ...
07/10/2026
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
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...
29/07/2026
Streaming Hits 48.6% of Total TV Usage in May
YouTube Leads in Media Distributo...
29/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
29/07/2026
Industry veteran joins Amagi to drive growth in Europe's leading broadcast market and advance cloud-native broadcast, FAST, and AI-driven operations.
LONDO...
29/07/2026
Work is ongoing to specify how to run RIST over WebTransport. This will deliver secure, stable, broadcast quality video playback and origination to any platform...
29/07/2026
Offline Files Makes the Drive Shelf Searchable on Mac
Brie Clayton July 29, 2026
0 Comments
A local Mac app for finding files, photos, and footage acr...
29/07/2026
Blackmagic Design Announces New UltraStudio Mini 12G
Brie Clayton July 29, 2026
0 Comments
New extremely portable Thunderbolt 4 capture and playback ...
29/07/2026
Brightline Lighting, a premier manufacturer of energy-efficient lighting systems for broadcast, videoconferencing, government, education and corporate applicati...
29/07/2026
Applications open for IFFI/WAVES Film Bazaar in Goa - Producer Delegation 28 July 2026
Image credit: Four Years Later
Screen Australia has opened applications...
29/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
29/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
29/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
29/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
29/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
29/07/2026
Foundry today announced that Academy Award-winning creative studio DNEG has implemented Hiero to support its editorial workflows. Part of the Nuke product famil...
29/07/2026
The Latest Addition to the Brand's StudioPro Ecosystem Combines Simple Deployment, Cloud Control and Professional Grade Wireless Reliability
QuickLink, a l...
29/07/2026
The Secret Master Adjustment Layer Hack in After Effects
Graham Quince July 28, 2026
0 Comments
Trish Meyer (who literally beta-tested the original Af...
29/07/2026
Post Completed with Blackmagic Cloud for Shane Kosugi's Feature Film SEEK
Brie Clayton July 28, 2026
0 Comments
Cannes Indie International Film Fe...
29/07/2026
Isabeau Miller Named Chair of Berklee Songwriting Department The Berklee alumna, who previously served on the Songwriting faculty, will begin her new role on ...
29/07/2026
RT launches Unsolved, a true crime podcast, presented by crime journalist Barry Cummins and presenter Katja Mia.
Unsolved is a weekly podcast exploring unsol...
28/07/2026
LiveU, the pioneer in IP-video transmission and cloud-based remote production, today detailed its historic performance records set during the 2026 FIFA World Cu...
28/07/2026
The NFL franchise rebuilt their off-site content operation for an era when teams...
28/07/2026
Longtime partners expand viewer choice, data-driven analysis, access, immersive ...
28/07/2026
There is a unique moment before every major production. The audience never sees it.
The cameras are ready. The talent is preparing. Directors review the final...
28/07/2026
The CW Network and ESPN have announced their highly anticipated streaming agreement to bring CW Sports' live events to the ESPN App will officially launch o...
28/07/2026
As more than tens of thousands of spectators filled Paris' Champ de Mars and...
28/07/2026
Appear's X Platform played a central role in Chile's first large-scale c...
28/07/2026
Responding to the broadcast industry's shift to embrace more flexible production platforms, Solid State Logic (SSL) is evolving its comprehensive System T p...
28/07/2026
Production leverages innovative camera technologies, AI, and data to capture the action in four-week inaugural competition
The first-ever professional dunking ...
28/07/2026
Prime Video to exclusively broadcast Wednesday night national NHL regular-season games in Canada...
28/07/2026
Every match will stream live on Paramount+ beginning in February,...
28/07/2026
Baxandall-inspired hardware EQ overhauled
TK Audio's Baxandall-inspired hardware EQ unit has just made a return, bringing the popular unit back into the...
28/07/2026
D700 system gains new live-focused rackmount surface
Asparion have just announced an expansion of their D700 control surface range, introducing a new model ...
28/07/2026
27 July 2026, Johannesburg - The National Film and Video Foundation (NFVF), an a...
28/07/2026
Ad Intel AI is Nielsen's first in a new generation of AI products built to t...
28/07/2026
Contribution to Europe's technological autonomy in the key industry telecommunications
aconnic AG (ISIN: DE000A0LBKW6), Munich, starts commercial shipments...
28/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
28/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
28/07/2026
Encompass Digital Media has been selected by Channel 4, one of the UK's public service broadcasters, to deliver managed linear playout services as part of a...
28/07/2026
Cinegy GmbH, the premier provider of software-defined television technology, has confirmed a new partnership with leading Korean systems integrator and distribu...
28/07/2026
Limecraft today announces version 2026.5 of its AI-powered production platform. Limecraft 2026.5 https://(www.limecraft.com/limecraft-2026-5-multicam-quad-view-...
28/07/2026
X Platform technology enabled a premium UHD viewing experience through a hybrid ground-to-cloud architecture developed with Chilevisi n, ClaroVTR and Pixop
App...
28/07/2026
LiveU, the pioneer in IP-video transmission and cloud-based remote production, today announced it has set historic performance records during the 2026 World Foo...
28/07/2026
dhd.audio announces that its latest generation firmware, Version 10.4, is now available to DHD customers. Version 10.4 introduces expanded configuration capabil...
28/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
28/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
28/07/2026
Brand's Intuitive Metering and Dialogue Tools Improve Efficiency and Maintain Clarity Across Projects Ranging from Sitcoms to Effects Heavy Fantasy Series
...