Postcomm awards the first standard licences to hays and TPG Post UK

23 December 2002

Competition in postal services took a major step forward today when Postcomm awarded the first long term licences to Hays Commercial Services Limited and TPG Post UK Limited.

The licences mark the start of wider competition in the provision of postal services throughout the UK. The new standard licences, which have a minimum life of seven years, will come into operation when the first stage of postal competition opens on 1 January 2003. Up to now only interim licences, which have a minimum of 12 months’ duration, have been issued by Postcomm.

The standard licences will enable Hays Commercial Services and TPG Post UK to carry bulk mail and provide consolidation, enhanced document exchange and tracked business-to-business services.

Notes for Editors

The long–term standard licence formalises the first step of the introduction of competition into postal services. From 1 January 2003 until March 2005, 30% by value of UK letters business will be open to competition. Competitors will be able to enter the market for bulk mail above 4000 items per mailing, for consolidated mail services and certain niche services. From 2005, a further 30% of the letters market will be open to competition, with full competition in 2007.

TPG Post UK is a UK subsidiary of Royal TPG Post BV, the Dutch public postal operator.

The document detailing Postcomm’s decision and the text of the licences can be found on Hays and TPG's consultation pages.

Details of Postcomm’s market opening strategy can be found in Promoting Competition in UK Postal Services – a Decision Document, which was published on 29 May 2002. It can be accessed from the Consultations section of the Postcomm website.