Impact of liberalised postal market probed

[TrueBlueTerrier]

http://uk.reuters.com/article/domesticN ... 6120071217

LONDON (Reuters) - The government launched a review on Monday into the effects of postal liberalisation on the state-owned Royal Mail and how to maintain the commitment to provide mail services to everyone in the country.

Britain and Sweden have led the way in the European Union on liberalising postal services.

But the Royal Mail and its supporters argue that the former monopoly carrier is at a disadvantage because it has a "universal service" obligation to deliver mail to all households for the same price whereas new entrants have targeted the more profitable business segment.

Business Secretary John Hutton said he had ordered the review because growing use of e-mail and mobile communications had created challenging market conditions for postal service operators while volumes of posted mail were forecast to decline.

The review will study the impact of liberalisation on the Royal Mail and other carriers and examine how to maintain universal service.

The Times reported on Monday that the review could lead to rival postal operators, such as Business Post and Dutch mail company TNT NV, being asked to help to fund Royal Mail's universal service obligation or that it could lead to calls for a breakup of Royal Mail.

The review will be carried out by a panel made up of Richard Hooper, a former deputy chairman of media and telecoms regulator Ofcom; Deirdre Hutton, chair of the Food Standards Agency; and businessman Ian Smith. It will report next summer.

Royal Mail is struggling to cope with competition from new private-sector rivals. In October, it said falling mail volumes and rising competition led to a one third drop in annual profit.

(Reporting by Adrian Croft; Editing by David Cowell)

[norbet colon]

there's a Hellmail article called "Who care's about the USO? " -just confirms everything

Sorry I can't do a link on Safari if you type the url EXACTLY as displayed the link breaks up , the _ &- parts of the url turn into a gap .

New Labour Studies/ Reports just come up with what New Labour wanted to hear in the first place .