Collecting and delivering stamped and metered mail is our core business. Ofcom, our regulator, has said that Royal Mail is the only company capable of delivering the Universal Service: a one-price-goes-anywhere, six day a week delivery service to 29 million addresses across the UK. For more detail, please see our Universal Service section.
In March 2012, we welcomed a new regulatory framework, which allows Royal Mail to compete fairly in the transactional, bulk mail, and direct mail sectors. The new framework will allow us to earn a fair commercial return for the majority of services we provide. Even with this return, we remain highly competitive.
Modernisation remains a priority. During the year we completed the upgrade of letter automation in our mail centres, which has made delivery rounds more efficient.
Our modernisation programme, along with a simpler portfolio, will also help reduce costs across UKPIL’s Business mail arm. But more remains to be done. We must complete our process of modernisation so as to compete effectively in the UK market.
This means not only making savings on costs, but also delivering a more efficient network and changing every process in the business. The time of maximum change is now.