Postcomm to investigate Royal Mail's delivery deals

LONDON - Postcomm is investigating the fairness of Royal Mail's provision of access to its delivery network, after other mail operators made allegations of unfair terms.

The postal regulator has judged that the allegations merit a full investigation, which it has already started, as to whether Royal Mail has contravened any of its licence conditions.

The complaint from Express, TPG Post UK and UK Mail was sparked after Royal Mail agreed to different terms for access to its downstream network with another unlicensed operator.

According to Postcomm's progress report on the investigation, Royal Mail's access deals with UK Mail and TPG Post in February and April 2004 set a single fixed price for access -- the price was the same for delivery anywhere in the UK, consistent with Royal Mail's retail prices, based on an average set by Royal Mail.

The deals also required the mail must be handed over at a minimum number of access points each day, and access in some postcode areas was mandatory.

Royal Mail agreed different terms for access with the unlicensed operator in October 2004, which involved what Postcomm refers to as zonal access pricing. This broke with the average price and by varying pricing according to geographical delivery area.

The agreement also contained other conditions that differed from the agreement Royal Mail reached with UK Mail and TPG.

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