Licensing and
Licensed
Operators for UK Postal Services Sector
Postcomm has the statutory power (under Section 11 of the Postal Services Act 2000) to issue licences to postal operators conveying letters costing £1 or less less per item or weighing 350 grams or less per item. Postcomm began its licensing regime by granting Royal Mail Group plc a long-term, universal service licence (that came into effect on 26th March 2001 - it has since been modified). Alongside this, whilst Postcomm was developing its market opening strategy it issued a number of interim licences to other postal operators.
Following consultations Postcomm determined its policy in a key policy decision document "Promoting Competition in UK Postal Services" (published on the 29th May 2002). After this (July 2002) Postcomm consulted on standard licence conditions and a draft model for bulk and consolidated mail. Following further consultations on potential postal operators' individual licences (launched in November 2002), the first standard licences were issued on the 23rd December 2002 (many more have since been granted). Those standard licences came into operation from phase one of opening up the UK postal services sector to competition (the 1st January 2003) onwards, and are renewable with a minimum duration of 7 years. Those licences permitted the relevant postal operators to perform services in areas such as bulk mail, consolidation/enhanced document exchange and tracked business-to-business mail services. It should be noted however that Royal Mail are still the only postal operator licensed to provide the universal postal service within the UK (although there remains the potential for others to be licensed to do this).
On the 1st January 2006 the UK's mail market was fully liberalised – that is, opened up for competition. This means Royal Mail no longer enjoys the statutory monopoly it held for 350 years. New operators licensed by Postcomm can now collect and deliver any mail, from any customers.
For further information for those seeking a licence or information on the UK licensing regime you should look at the Postcomm website or contact them directly.
Postcomm
Address - Hercules House, 6 Hercules Road, London SE1 7DB
Telephone - 020 7593 2100
Fax - 020 7593 2142
Website - http://www.postcomm.gov.uk/Index.html