The move marks a change of heart for Postcomm, which initially rejected Royal Mail's plan to base the cost of sending letters and parcels on the "delivery density" of the destination. Experts predict zonal pricing, if approved for rival operators, to be rolled out to cover all post handled by Royal Mail.
Royal Mail's revised proposals relate to the prices that are paid to Royal Mail Wholesale for the delivery of mail over the final mile and where the price of each mailing varies according to its zonal destination.
Postcomm is proposing to modify the licence as requested by Royal Mail in its application, which will allow the change from a five to a four zone zonal access pricing structure.
It is planning to change Royal Mail's application in two respects. It is proposing to modify Royal Mail's proposed London zone to make it more easy to operate and to reduce the proposed rebalancing sub-cap to 3%.
Royal Mail is expected to use this as the blueprint for zonal pricing for retail, which was originally thrown out.
Postcomm is consulting on the proposals until April 3 and intends to make its final decision in May.
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