Royal Mail PLC Statement on Ofcom announcements (6447Y)
03 December 2014 - 2:37AM
UK Regulatory
TIDMRMG
RNS Number : 6447Y
Royal Mail PLC
02 December 2014
Royal Mail plc
2 December 2014
Statement on Ofcom announcements
Royal Mail plc (RMG.L) welcomes Ofcom's undertaking to intervene
swiftly to safeguard the Universal Service where appropriate.
However, Royal Mail is disappointed that Ofcom does not share the
company's view on the threat that unfettered direct delivery poses
to the future sustainability of the Universal Service.
The company will play its full part in Ofcom's broader review of
Royal Mail's ability to deliver the Universal Service, including
efficiency and parcels delivery. Royal Mail will also provide a
detailed response to the consultation Ofcom has announced today
concerning pricing of Access Mail. As part of its submission, the
company will highlight that commercial freedom, such as flexibility
in setting zonal Access prices, has previously been recognised by
Ofcom as a means by which Royal Mail can mitigate the impact of
direct delivery.
Royal Mail welcomes competition and operates in the most
liberalised postal market in the EU. No other EU country has the
combination of significant mandated Access and direct delivery. In
addition, the ongoing decline in letter volumes means that the
incentives on Royal Mail to reduce costs are already strong. Royal
Mail's efficiency measures mean that more than 50,000 colleagues
have left the company since 2003 and at least 3,000 people are
expected to leave the business this financial year.
ENDS
For further information please contact:
Media Relations
Candice Macdonald
Phone: 07436 267324
Email: candice.macdonald@royalmail.com
Investor Relations
Phone: 020 7449 8297
Email: investorrelations@royalmail.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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