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DIRECT MARKETING NEWS: Royal Mail has greater freedom in pricing thanks to new proposal

Postal regulator Ofcom has announced a new proposal that would give Royal Mail greater freedom in the way it sets its prices. The proposal, designed to safeguard competitors, is subject to an 11 week public consultation.

Ofcom requires Royal Mail to continue to provide competitors with access to its delivery network but it will now have the freedom to set the ‘wholesale price’ for access to its network.

Speaking about the proposal TNT Post UK said, “We welcome the announcement of the regulatory review of Royal Mail and its emphasis on securing the long term health of the USO, whilst recognising the need for competition within the UK postal market whether through Downstream Access or End to End. We are also pleased that Ofcom recognises that competition in principle brings substantial benefits, especially in terms of increasing pressure on Royal Mail to improve efficiency.

“We are concerned however that Royal Mail has more freedom to price at individual customer level and need to analyse the detail of the proposals.”

TNT Post recently refreshed its data cleansing solution, dataMatters, and claims by using it marketers can reduce printing and postage costs saving them an average of 20 per cent per DM campaign.