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answer text |
<p> </p><p>Ofcom as the regulator for postal services has the primary statutory duty
of protecting the universal service and the regulatory powers to intervene if the
universal service is ever at risk.b</p><p> </p><p> </p><p> </p><p>Ofcom has set out
the circumstances under which it would intervene to protect the universal service
from any serious threat from competition in their publication: “Final Guidance on
Ofcom’s approach to assessing the impact on the universal service”.</p><p> </p><p>
</p><p> </p><p>Ofcom’s assessment would consider the financial sustainability of the
universal postal service and the need for the universal service provider to be able
to earn a reasonable commercial rate of return in connection with the provision of
the universal service.</p><p> </p><p> </p><p> </p><p>The percentage of addresses covered
by end-to-end competitors to Royal Mail would clearly be a factor that Ofcom would
consider, but as a part of a wider range of factors. Ofcom has therefore not set a
threshold of end-to-end delivery coverage by alternative postal operators to determine
a threat to the Universal Service. At the present time, end-to-end competition accounts
for less than 0.5% of letter volumes in the United Kingdom.</p><p> </p><p> </p><p>
</p><p> </p><p> </p><p> </p><p> </p><p> </p><p> </p>
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