Royal Mail prepares for Postcomm battle

The landmark announcement by Postcomm that sets out a framework for access to Royal Mail's postal facilities is already mired in counter claims and delay, with Royal Mail prepared to take the matter to the High Court if necessary.

Royal Mail is currently preparing its formal response with a team of legal advisors.

But chairman Alan Leighton has already made it clear that the access price is "lower than we feared" and that Royal Mail "will not hesitate to fight the regulator's plans in the High Court if necessary".

The 140-page proposal relates specifically to independent postal company UK Mail after it approached Postcomm in April 2002 requesting a determination.

However, the access arrangements for UK Mail are likely to provide the template for all competitors looking to access Royal Mail's network.

The proposed prices range from 11.46p up to £4.06. While Royal Mail has expressed concern that the price could damage its ability to provide a universal service, UK Mail has countered that the proposal is more than it had expected.

"It's not going to make anyone lots of money, but we can be competitive," said Guy Buswell, managing director of UK Mail. "Any higher and there wouldn't be any competition."

Interested parties have until 20 August to respond to the document, but the chances of satisfying both sides look increasingly unlikely.

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