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OFCOM Review
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wacko74
- EX ROYAL MAIL
- Posts: 1572
- Joined: 04 Apr 2009, 20:35
- Gender: Male
OFCOM Review
Looks like those muppets at OFCOM are still not satisfied that we're delivering DSA at a loss... launching another review into Royal Mail regulation.
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TrueBlueTerrier
- FORUM ADMINISTRATOR
- Posts: 72561
- Joined: 30 Dec 2006, 10:29
- Gender: Male
- Location: On my couch
Re: OFCOM Review
Royal Mail 'under review' by Ofcom for holding UK monopoly
http://www.telegraph.co.uk/finance/news ... opoly.html" onclick="window.open(this.href);return false;
Watchdog to draw up new rules for Royal Mail following the withdrawal of national rival Whistl from the market
Royal Mail is undergoing a "fundamental review" by Ofcom following the withdrawal of rival postal service Whistl from the market.
The watchdog is to rethink the pricing freedoms awarded to the 499-year-old postal service in 2012 now that there is no national competition.
After Ofcom posted its press release, Royal Mail's shares slipped 1.93pc to 495.2p in early trading.
In 2012, Ofcom established a framework allowing Royal Mail the greater commercial freedoms on the understanding that the company would be subject to pressure from rivals to deliver value to customers.
These were designed to ensure the continuation of a flat-rate, affordable service six days a week.
These concessions could now be removed in order to protect customers from price rises or changes to postal services, now that Royal Mail is operating unfettered by competition in the markeplace.
Whistl had been delivering around 3m letters a week in London, Manchester and Liverpool
"The review will ensure regulation remains appropriate and sufficient to secure the universal postal service, given the recent withdrawal by Whistl from the ‘direct delivery’ letters market, which has resulted in Royal Mail no longer being subject to national competition," Ofcom said.
Ofcom will assess Royal Mail’s performance and determine the company’s potential ability to set wholesale prices in a way that might harm competition.
When Ofcom introduced the 2012 pricing concessions, Royal Mail was financially unstable, losing ground to competitors in a market that was already shrinking.
Today, Ofcom argued, "Royal Mail is in a stronger position financially".
Royal Mail was privatised in 2013, and performance has been steadily improving, with parcel deliveries rising.
Last year, Ofcom was called upon to investigate complaints by Royal Mail's rivals over price increases the former state-owned business planed to impose on wholesale mail contracts.
Ofcom has said that it will be seeking formal submissions from industry, consumer groups and other stakeholders in July.
The review is expected to be completed, and a revised regulatory framework put in place, during 2016.
http://www.telegraph.co.uk/finance/news ... opoly.html" onclick="window.open(this.href);return false;
Watchdog to draw up new rules for Royal Mail following the withdrawal of national rival Whistl from the market
Royal Mail is undergoing a "fundamental review" by Ofcom following the withdrawal of rival postal service Whistl from the market.
The watchdog is to rethink the pricing freedoms awarded to the 499-year-old postal service in 2012 now that there is no national competition.
After Ofcom posted its press release, Royal Mail's shares slipped 1.93pc to 495.2p in early trading.
In 2012, Ofcom established a framework allowing Royal Mail the greater commercial freedoms on the understanding that the company would be subject to pressure from rivals to deliver value to customers.
These were designed to ensure the continuation of a flat-rate, affordable service six days a week.
These concessions could now be removed in order to protect customers from price rises or changes to postal services, now that Royal Mail is operating unfettered by competition in the markeplace.
Whistl had been delivering around 3m letters a week in London, Manchester and Liverpool
"The review will ensure regulation remains appropriate and sufficient to secure the universal postal service, given the recent withdrawal by Whistl from the ‘direct delivery’ letters market, which has resulted in Royal Mail no longer being subject to national competition," Ofcom said.
Ofcom will assess Royal Mail’s performance and determine the company’s potential ability to set wholesale prices in a way that might harm competition.
When Ofcom introduced the 2012 pricing concessions, Royal Mail was financially unstable, losing ground to competitors in a market that was already shrinking.
Today, Ofcom argued, "Royal Mail is in a stronger position financially".
Royal Mail was privatised in 2013, and performance has been steadily improving, with parcel deliveries rising.
Last year, Ofcom was called upon to investigate complaints by Royal Mail's rivals over price increases the former state-owned business planed to impose on wholesale mail contracts.
Ofcom has said that it will be seeking formal submissions from industry, consumer groups and other stakeholders in July.
The review is expected to be completed, and a revised regulatory framework put in place, during 2016.
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