Big business is only beneficiary of postal shake-up, review finds

Business News IN BRIEF

*Liberalisation of the postal service has delivered no discernible benefits for any group other than larger businesses, an independent inquiry into the mail market has found. The review, commissioned by the Government to examine the impact of its decision to open up the postal market to full competition in January 2006, said the reforms had produced "no significant benefits" to families or to small businesses, and posed a "substantial threat" to the financial security of Royal Mail. The investigation was launched amid concern that Royal Mail was being affected by competition in the lucrative bulk mail market, where up to 20 companies now compete for the custom of large businesses. The state-run Royal Mail struggles to compete because it is duty-bound to continue offering a universal service to every address in Britain, and therefore has substantially higher costs than its rivals. The industry regulator, Postcomm, welcomed the review.

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