Here is snip from the lastest document available from the Postcomm website. I would say they are up s**t creek with competition because its coming to a head.
Development of competition
The UK addressed mail market has been fully liberalised since January 2006, and as of January 2008, there are 17 licensed mail operators in addition to Royal Mail. Competition has so far taken two main forms in the UK, “accessâ€
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Development of competition - Postcomm
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Phantom
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