Competition could threaten services, Royal Mail claims

[TrueBlueTerrier]

http://www.bbc.co.uk/news/business-25154439" onclick="window.open(this.href);return false;

The Royal Mail has warned that an increase in competition from other companies could jeopardise the future of the postal system.

Homes and businesses in Manchester - where TNT Post now delivers - were sent a stark letter by the Royal Mail, claiming its "universal service" is in danger.

Royal Mail Operations Director Stuart Simpson told BBC Radio 5 live's Breakfast: "Ultimately if they pick off all the big cities and don't deal with the rural areas - that could threaten the stability in the long term."

Ofcom said it did not believe the service was under threat from competing postal networks, and TNT called the letters "scaremongering".

[demon]

simple were going there anyway under cut them on price and drive the out top brass need to start doing something for the overpaid jobs

[OnAFlyer]

RM is already laying the foundations for a few years time when profits drop and it goes cap in hand pleading for the USO to be reduced to less days. Saturdays would be easy to get rid of, be almost no inconvenience to customers and save hundreds of millions per year.

[Lincox]

And the tax payer will pick up the tab for another 20,000 job losses.

[redeye67]

Yet more blatant spin TNT have about 1% of the letters market they can't threaten the Universal service as it's protected by parliament plus off com would impose sanctions on any postal company that threatens RM US to give RM a level playing field just because they have a few agency staff prob on zero hour contracts isn't going to threaten RM TNT haven't the newt work to threaten RM TNT might want to cherry pick firms which they have been doing for years anyway

[Brain Fury]

"Ultimately if they pick off all the big cities and don't deal with the rural areas - that could threaten the stability in the long term."

TNT plan to cover 20% of national deliveries (profitable ones) in the next 5 years.

No doubt you'll be at the front of the queue moaning about RM not doing anything if or when it happens.