Royal Mail's application for the deregulation of packet products
9 December 2008
On 20 November 2008 Royal Mail submitted an application to Postcomm to remove the current price controls (Condition 21 of its licence) for a number of packet products and product formats.
Royal Mail’s application is based on its belief that that competition is sufficiently developed to protect the interest of users of packet products.
This application does not include the universal service products used by customers when sending parcels and packets at Post Offices.
The packet products for which an application has been made are as follows:
| Product description | Format covered by application |
|---|---|
| Mailsort 1400 1st Class | Packet format only |
| Mailsort 1400 Residues 1st Class | Packet format only |
| Mailsort 1400 2nd Class | Packet format only |
| Mailsort 1400 Residues 2nd Class | Packet format only |
| Mailsort 1400 3 (including Flatsort 1400 3) | Packet format only |
| Packetpost 1st Class | All formats |
| Packetpost 2nd Class | All formats |
| Packetsort 8 1st Class (including Flatsort 8 1st Class) | All formats |
| Packetsort 8 2nd Class (including Flatsort 8 2nd Class) | All formats |
| Response Services 1st Class | Packet format only |
| Response Services 2nd Class | Packet format only |
| First Class Postage Paid Impression (PPI) | Packet format only |
| Second Class Postage Paid Impression (PPI) | Packet format only |
Postcomm believes that Royal Mail’s application will be of considerable interest to competitors, both licensed and unlicensed, and to customers who use packet products. Postcomm will publish a non-confidential version of the application as soon as possible.
Postcomm first has to consider whether the information that has been provided by Royal Mail is sufficient and of good quality. We anticipate that this process (and requesting additional information from Royal Mail if it is needed) will take until February 2009.
Once there is sufficient information of good quality, Postcomm will consider whether competition is sufficiently developed to protect customers if price controls are removed. This analysis will then be subject to consultation with all stakeholders in summer 2009.
Royal Mail has also asked Postcomm to remove the requirement for it to provide notification of changes (under Condition 7 of its licence) to those packet products from which the price control is removed (if there are any). In addition, Royal Mail is seeking an exemption from Condition 7 for two additional packet products: Royal Mail Tracked and Mail Order Returns which are not currently price controlled.
Further information about Royal Mail’s application and the timescales for considering the application will be published on the Postcomm website as the information is available. Royal Mail will also publish information on its website about the application that it has made.
Please contact Mick Fews (email link) or on 0207 593 2197 if you wish to discuss Royal Mail’s application.
