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| Version 1 | Version 2 |
|---|---|
| Royal Mail regulation to be reviewed by Ofcom | Royal Mail regulation to be reviewed by Ofcom |
| (35 minutes later) | |
| The regulation of Royal Mail is to be reviewed by Ofcom after the withdrawal of rival Whistl from the direct delivery letters market. | The regulation of Royal Mail is to be reviewed by Ofcom after the withdrawal of rival Whistl from the direct delivery letters market. |
| Ofcom said the "fundamental" review would "ensure regulation remains appropriate and sufficient to secure the universal postal service". | Ofcom said the "fundamental" review would "ensure regulation remains appropriate and sufficient to secure the universal postal service". |
| Royal Mail no longer faces any national competition for direct delivery of letters, Ofcom said. | Royal Mail no longer faces any national competition for direct delivery of letters, Ofcom said. |
| Whistl said last week it was pulling out of the direct delivery market. | Whistl said last week it was pulling out of the direct delivery market. |
| The review will look at whether Royal Mail's prices are "both affordable and sufficient to cover the costs of the universal service". | The review will look at whether Royal Mail's prices are "both affordable and sufficient to cover the costs of the universal service". |
| It will consider whether Royal Mail's "commercial flexibility remains appropriate", and whether wholesale or retail charge controls might be necessary. | It will consider whether Royal Mail's "commercial flexibility remains appropriate", and whether wholesale or retail charge controls might be necessary. |
| Royal Mail shares fell more than 2.5% in early trading on Tuesday. | |
| Ofcom expects its review to be completed during 2016. | |
| Existing regulations for Royal Mail from 2012 were designed to ensure the continuation of a flat-rate, affordable service six days a week. | Existing regulations for Royal Mail from 2012 were designed to ensure the continuation of a flat-rate, affordable service six days a week. |
| Mixed bag | |
| Ofcom's review will incorporate an existing probe that is looking at Royal Mail's efficiency. | |
| It will also weigh up its performance in the parcels market, and assess the firm's potential to set wholesale prices in a way that may harm competition. | |
| Ofcom added that Whistl's withdrawal from direct delivery "represents a significant change" in the market. | |
| Whistl confirmed it would end its home delivery service in London, Liverpool and Manchester last week. | |
| The Dutch-owned firm suspended deliveries last month after losing funding. |