- International Distribution Services
- 05 September 2024 09:10:41
Source: Sharecast
Ofcom stated that while first-class post will remain at six days a week, it suggested moving towards second-class letters being delivered within three working days but not on Saturdays, one of its "modernisation" proposals from back January, enabling Royal Mail to "improve reliability, make substantial efficiency savings, and redeploy its existing resources to growth areas such as parcels".
The regulator's proposed changes, which do not require any changes to legislation, were expected to wrap up the consultation phase in early 2025, with a decision set to be published in summer 2025.
Lindsey Fussell, Ofcom's group director for networks and communications, said: "Postal users' needs are at the heart of our review. If we decide to propose changes to the universal service next year, we want to make sure we achieve the best outcome for consumers.
"So we're now looking at whether we can get the universal service back on an even keel in a way that meets people’s needs. But this won’t be a free pass for Royal Mail – under any scenario, it must invest in its network, become more efficient and improve its service levels."
As of 0910 BST, shares in Royal Mail parent company International Distribution Services were up 0.35% at 340.60p.
Reporting by Iain Gilbert at Sharecast.com