Ofcom removed profit cap on Royal Mail's address database

[TrueBlueTerrier]

http://www.postaltechnologyinternationa ... wsID=50798" onclick="window.open(this.href);return false;

UK postal regulator Ofcom has remove the cap on the amount of profit Royal Mail can make from its Public Address File database, which provides 28 million national addresses to businesses and charities.

According to Post and Parcel, the regulator decided to remove the cap, which meant that if Royal Mail made 8-10% profit on top of its PAF operating costs, the extra profits would be invested back into the PAF system, or returned to customers, in order to give the postal operator more of an incentive to grow the PAF database and improve efficiency.

Although some consultation respondents expressed concern to Ofcom that removing the profit cap would mean a significant increase in PAF licence fees, the regulator promised that if it sees “significant” price increases in the PAF system, it would be likely to investigate. If price increases did not stem from an improvement in the service, the regulator said it would review whether price terms remained “reasonable”.

Ofcom said that Royal Mail is currently in the process of reviewing its pricing and licensing framework for PAF, and that it will consider whether an alternative price control mechanism is needed if necessary following this review.

As well as confirming that Royal Mail will continue to own and operate PAF, which has about 37,000 users, Ofcom also said new quality targets will be set for the database, Post and Parcel reported.

Ofcom said, “It should be useful and pragmatic, balancing the consensus of demand by stakeholders for a meaningful way of measuring quality, with a pragmatic approach to developing and measuring performance against the target.”

The regulator said it expects Royal Mail to develop quality targets in the coming weeks.

[Tanker007]

Its amazing how you can make a business more appealing to a potential buyer when you remove PAF restrictions, clear 12Billion from the pension deficit, don't pay the workforce the agreed wage increase etc..
Lol..... just amazing!

I wonder how Ms Greene and Co sleep at night.. very comfortably I assume!,

shame on you!

[UnhappyGremlin]

Its amazing how you can make a business more appealing to a potential buyer when you remove PAF restrictions, clear 12Billion from the pension deficit, don't pay the workforce the agreed wage increase etc..
Lol..... just amazing!

I wonder how Ms Greene and Co sleep at night.. very comfortably I assume!,

shame on you!

Presumably, on a very large pile of cash that is substituting for a mattress, all made from the sweat and hard work of all us posties.