Royal Mail's delivery network and the Post Office retail network could become separate divisions remaining under the overall ownership of Royal Mail, leading to a more transparent view of its operations.
The Times reported yesterday that Postcomm is aiming to consult consumers, the postal industry and Royal Mail about the plan in the New Year.
A Postcomm spokesman said: "Separation is something we are looking at, although work is at a very early stage yet.
"We have some concerns about access price. If Royal Mail is only allowing access to its network at a punitive rate, then competition will not develop effectively."
The response from Royal Mail was unequivocally contrary to the plan.
A Royal Mail spokesman said: "We are absolutely opposed to any such idea. We can't see how it would benefit our customers or our people. At this time, of all times, when we don't know how the opening of competition will affect us, it seems an extraordinary decision to raise this issue."
However, postal watchdog Postwatch is in favour and its chairman Peter Carr wants separation to happen as soon as possible.
"The only way there will be effective competition in postal service is if Royal Mail is separated. The access price needs to be independently assessed and Royal Mail can not be allowed to give itself favourable terms.
"We also need separation so that the operation of the business can be seen a more clearly. Royal Mail says it loses a lot of money on domestic mail, but we don't know that."
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