Postcomm consults on an interim licence for SDS

15 April 2002

Postcomm today began consultation on the proposed issue of a short-term licence to Special Delivery Services (SDS).

SDS currently handles the delivery of 40,000 credit cards and store cards a day for 26 major financial institutions. The proposed pilot licence would enable SDS additionally to collect and sort credit card statements and ancillary mail for some of its existing customers and pass these to Consignia for final delivery. The most this service will carry will be 30 million items of mail a year.

Postcomm is minded to grant the licence because it is satisfied that the amount of mail that can be carried, both in isolation, and cumulatively with other licences already granted or proposed, will not have an adverse effect on Consignia’s ability to provide the universal service. If granted, the licence would allow SDS to process in a year less than half the number of items that Consignia handles in a day. In addition, all the mail will be delivered by Consignia, which will be paid a fair rate for the work.

The licence will last for one year. The consultation period will end on 27 May 2002.