Postcomm invites responses to licensing proposals

LONDON - Postcomm has begun consulting on the licensing framework that needs to be in place when the postal market is fully open to competition.

Postcomm wants the framework to encourage new companies to enter the market, while providing sufficient safeguards to protect the interests of customers. Its favoured date for the introduction of full competition is January 1 2006. It has proposed two codes of practice that should be adopted by licensed operators.

One code covers mail integrity and includes rules on security of the mail and lays down procedures to be followed if mail is interfered with. It also provides rules on staff selection and training, and requires the collection of statistics to enable Postcomm and Postwatch, and anyone else who asks, to measure the licensee's performance.

The other code would require all mail companies to cooperate on common operational issues such as the forwarding of mail and handling mail that is returned to sender. This is necessary to ensure that customers are not disadvantaged in a multi-operator market.

Unlike Royal Mail, which must publish its performance against set service targets, competitors will be able to set their own targets and the market will decide how successful they are.

As well as signing up to the codes of practice, new entrants will also be required to provide a financial guarantee so that in the event of service failure, any existing mail can be delivered.

This is because Postcomm believes small firms, perhaps providing local delivery services, will have a place in the market and the proposals suggest lower annual licence fees for companies with a turnover of less than 拢100,000.

Responses to the document are requested by February 28 2005. It has been published on Postcomm's and printed copies will shortly be available from Postcomm.

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