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 ...

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...

04/07/2026

Detective Conan: Fallen Angel of the Highway Opens in Dolby Cinemas Across Japan, Presented in Dolby Atmos and Dolby ...

April 7 2026, 19:00 (PDT) Detective Conan: Fallen Angel of the Highway Opens in...

01/06/2026

Dolby Sets the New Standard for Premium Entertainment at CES 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 Flex LTS Delivers Smarter Search, Faster Editing, and an AI-Ready Foundation for Modern Media

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

01/05/2026

NBCUniversal's Peacock to Be First Streamer to Integrate Dolby's Full Suite of Premium Picture and Sound Innovations

January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...

10/04/2026

The Invisible OPEX Killer: Is Your Server Room Dragging You Down?

The Invisible OPEX Killer: Is Your Server Room Dragging You Down? In the broadcast world, we talk a lot about uptime. We talk about talent retention, latency...

10/04/2026

NAB 2026: Imagine Communications to Showcase Expanded Multiviewer Portfolio

Imagine Communications will showcase its multiviewer portfolio at NAB Show 2026 (April 19-22, Booth N1328, Las Vegas Convention Center), including Prismon and t...

10/04/2026

NAB 2026: Chyron Releases PRIME VSAR 2.3 with Updated Unreal Engine Integration

Chyron has released PRIME VSAR 2.3, an update to its virtual set and augmented reality solution for broadcast. The release adds compatibility with Unreal Engine...

10/04/2026

NAB 2026: Techex to Showcase New tx darwin Capabilities

Techex will exhibit at NAB Show 2026 (Booth W2267, April 19-23, Las Vegas Convention Center), demonstrating new tx darwin features including consumer multiview,...

10/04/2026

NAB 2026: NDI to Showcase Ecosystem and NDI 6.3

NDI will exhibit at NAB Show 2026, demonstrating its IP video ecosystem through live partner integrations, NDI 6.3 features, AI metadata workflows, and creator ...

10/04/2026

FOR-A Acquires Tamura Corporations Information Equipment Business

FOR-A has announced the acquisition of all shares of Tamu Radiance Corporation, a new company spun off from the Information Equipment Business of Tamura Corpora...

10/04/2026

NAB 2026: InSync Technology to Unveil New Video Processing and Frame Rate Conversion Products

InSync Technology will showcase new and updated video conversion products at NAB...

10/04/2026

TNT Sports and DAZN Announce Monthly Boxing Event Series in the United States

TNT Sports and DAZN have announced a partnership to air monthly boxing events in the United States under the brand The Fight. The series will be promoted in p...

10/04/2026

Panasonic Introduces SQ3 Series 4K LCD Displays for Professional Environments

Panasonic Projector and Display has announced the SQ3 Series of 4K LCD displays as part of its MEVIX professional display portfolio. All sizes will be available...

10/04/2026

Amagi Adds Agentic Capabilities to Its Media Operations Platform

Amagi has announced the addition of Agentic Media Operations to its Amagi NOW platform, integrating AI reasoning agents across its media supply chain workflows ...

10/04/2026

LTN Announces Network Enhancements Ahead of C-Band Spectrum Auction

LTN has announced enhancements to its global IP video network targeting broadcasters transitioning from satellite distribution. The updates come ahead of US fed...

10/04/2026

Daktronics Installs New LED Displays at Yankee Stadium

Daktronics has installed new LED displays at Yankee Stadium, upgrading the main centerfield board, two flanking boards, and two ribbon displays spanning the 200...

10/04/2026

NAB 2026: Harmonic Announces AI and Cloud Updates to Hybrid Streaming Solution

Harmonic has announced updates to its hybrid streaming solution, including Model Context Protocol (MCP) connectivity for AI applications, cloud-native deploymen...

10/04/2026

NAB 2026: MultiDyne to Debut FiberSaver-10G and VF-9100

MultiDyne Video and Fiber Optic Systems will introduce two new fiber transport products at NAB Show 2026 (Booth C4425, April 19-22): the FiberSaver-10G waveleng...

10/04/2026

NAB 2026: Telos Alliance and ip-studio to Demonstrate STUDIO ZERO

Telos Alliance and ip-studio will demonstrate STUDIO ZERO, a cloud-hosted virtual studio, at NAB Show 2026. First introduced at NAB Show 2023, STUDIO ZERO integ...

10/04/2026

Pixotope and d&b Solutions Announce Strategic Partnership for XR and Virtual Studio Production

d&b solutions, a London-based audio-visual, lighting, and media integration grou...

10/04/2026

ARRI and SmallHD Announce Lens Data Monitor Overlay License for Hi-5 and Hi-5 SX

ARRI and SmallHD have announced a new expansion license for ARRI's Hi-5 and Hi-5 SX hand units that displays lens data overlays on supported SmallHD monitor...

10/04/2026

Roku to Stream Exclusive Savannah Bananas Game Package on Roku Sports Channel

Roku and the Banana Ball Championship League (BBCL) have announced an exclusive streaming partnership to bring five BBCL games to the Roku Sports Channel in 202...

10/04/2026

Ratings Roundup: More Than 18 Million Fans Tune Into 2026 NCAA Mens March Madness on TNT and CBS Sports

Ratings Roundup is a rundown of recent rating news and is derived from press rel...

10/04/2026

No Other Land, Mr. Nobody Against Putin,and More Sundance Institute-Supported Films Nominated for Peabody Awards

The Peabody Awards don't just recognize great storytelling, they spotlight t...

10/04/2026

Fans Crown Winners at the First Spotify Podcast Awards in France

After launching the Spotify Podcast Awards in Mexico last year, we brought the fan-voted celebration to Paris this week for its first edition in France. Hosted ...

10/04/2026

Yamaha launch the DXR/DXS & CXR/CXS Mk3

Powered and unpowered live PA ranges upgraded Yamaha have just refreshed four of their hugely popular PA speaker ranges, delivering significant improvements...

10/04/2026

UJAM open Gorilla Engine to third-party developers

Underlying plug-in & VI technology now available to others UJAM's latest announcement sees the company open up' Gorilla Engine, the development pla...

10/04/2026

2026 NAB Show Exhibitor Insight: Bitcentral

Share Copy link Facebook X Linkedin Bluesky Email...

10/04/2026

Bitcentral To Feature Connected Media Workflows At 2026 NAB Show

Share Copy link Facebook X Linkedin Bluesky Email...

10/04/2026

Bitcentral to Showcase Connected Media Workflows and Inte...

NEWPORT BEACH, Calif., April 10, 2026 Bitcentral, a leading provider of professional media solutions for broadcast and digital video, will showcase its latest...

10/04/2026

Ikegami to Introduce Expanded Range of Broadcast Production Solutions at NAB 2026

Ikegami to Introduce Expanded Range of Broadcast Production Solutions at NAB 202...

10/04/2026

AJA Debuts SMPTE ST 2110 and openGear Solutions Ahead of NAB 2026

AJA Debuts SMPTE ST 2110 and openGear Solutions Ahead of NAB 2026 Brie Clayton April 10, 2026 0 Comments New gear and updates address evolving hybrid ...

10/04/2026

Portland Fire+ Streaming Platform Launches

Share Copy link Facebook X Linkedin Bluesky Email...

10/04/2026

Tod Musgrave Joins Proton as U.S. Sales & Marketing Director

Share Copy link Facebook X Linkedin Bluesky Email...

10/04/2026

Proton Expands Minicam Portfolio With Proton Pro At 2026 NAB Show

Share Copy link Facebook X Linkedin Bluesky Email...

10/04/2026

FCC To Vote on Changes to Audible Crawl Rule

Share Copy link Facebook X Linkedin Bluesky Email...

10/04/2026

Frequency Launches AI Platform for Streaming Television a...

Frequency, the engine behind the worlds leading streaming television channels, today launched its AI platform for Frequency Studio, powering the entire channel ...

10/04/2026

UKTV Highlights: Saturday April 25th - Friday May 1st 2026

What can I watch on UKTV and stream on U this week? This week on UKTV and the free streaming service U, viewers can watch a range of new and returning programm...

10/04/2026

Jnger Audio Joins EBU ADM Integration Group as Founding Member to Help Advance ADM/S-ADM Integration

J nger Audio Joins EBU ADM Integration Group as Founding Member to Help Advance...

10/04/2026

Multi-BAFTA-winning Chernobyl makes its free-to-air debut, marking 40 years since the disaster

Five-part Sky Original drama airs nightly on Sky Mix and Sky Atlantic from 20 Ap...

09/04/2026

Yospace surpasses 10 billion ads stitched in a single month, as ad-supported streaming surges

Staines-upon-Thames, UK, 09, April, 2026 - Yospace, the trusted leader in Dynam...

09/04/2026

just:play pro 2026 and just:live pro 2026 Sneak Preview News for NAB 2026

just:play pro 2026 and just:live pro 2026 Sneak Preview News for NAB 2026 More Details:At NAB 2026, ToolsOnAir will showcase just:play pro 2026 and just:live p...

09/04/2026

just:in mac pro 2026 - The Next Level of Professional Recording on macOS at NAB 2026

just:in mac pro 2026 - The Next Level of Professional Recording on macOS at NAB ...

09/04/2026

NAB 2026: Zixi to Demonstrate Live Video Workflows and Satellite Replacement

Zixi will demonstrate IP-based live video workflow solutions at NAB Show 2026 (Booth W2057). The industry is moving quickly toward IP-based distribution as br...

09/04/2026

Deloitte Research: Women's Elite Sports Revenues Expected to Reach at Least $3 Billion in 2026

Global women's elite sports revenues are expected to reach at least $3 billi...

09/04/2026

Monitor Engineer Gavin Tempany Mixes Kylie Minogue's Tension Tour on Solid State Logic L550 Plus

Monitor engineer Gavin Tempany mixed Kylie Minogue s Tension Tour on a Solid Sta...

09/04/2026

NAB 2026: KOKUSAI DENKI Electric America to Debut New 4K Camera and Remote Control Panel

KOKUSAI DENKI Electric America will exhibit at NAB Show 2026 (Booth C5507), debu...

09/04/2026

NBC Sports Reviews Innovations and Milestones from Its 2025-26 NBA Regular Season

With the 2025-26 NBA regular season concluded and the playoffs beginning next we...