Recommendation 7

Beyond the immediate concerns with Royal Mail, we also have growing concerns that Ofcom is not up to the job of regulating a postal market that is growing in competition and complexity. Much of the mail that our constituents rely on, from hospital appointments to energy bills, falls outside the Universal Service Obligation regulated by Ofcom. The public increasingly expects next-day delivery by e-commerce outlets and competitors to Royal Mail make extensive use of its infrastructure without contributing to its costs. It is clear that Ofcom needs to reset its approach to regulating of postal services. The evidence we have heard indicates that the public do not distinguish between mail that is outside the USO and mail that is within it. A common complaint is that important correspondence such as medical appointments is being missed. There should be an assessment of whether this mail should be covered by the USO. (Conclusion, Paragraph 20)