Royal Mail’s rivals ‘gaining momentum’
Royal Mail’s competitors are “gaining momentum”, according to a report published today by Postcomm.
The mail service regulator’s Competitive Market Review for 2005 shows that since the postal market was opened up to limited competition just over two and a half years ago, Royal Mail’s rivals have won more than two percent of the market.
“Customers tell us that this is already encouraging Royal Mail to be more responsive to their needs and offer more choice and innovation in postal services,” said Postcomm chairman Nigel Stapleton.
However, he stated that that there were still several important barriers to competition – including consumers’ lack of awareness that other mail companies existed.
The government ended Royal Mail’s monopoly in 2002, but it still enjoys customer advantage due to its huge scale and tax advantages. However, from January 1st 2006 the postal service will open up to full competition.
