Licensing framework for a fully open market
In 2003, the postal market was first opened to competition. There are now 18 licensed operators in the market. Confidence in the postal market has been maintained as mail operators have broadly achieved high standards of service quality and customer focus. However, Postcomm has been sensitive to suggestions that licensing arrangements could do more to facilitate market entry for some small and medium sized potential mail operators – and therefore promote the development of choice and innovation for mail users.
In May 2007 we started consulting on proposals to move to a form of less prescriptive licensing for those seeking to enter the postal services market. In January 2008, we published our decision document, which detailed a number of changes to the application procedure, including:
- removing the annual fee for all licensees with a turnover of less than £10 million (licensees with a turnover of more than £10 million pay an annual fee based on their share of the market);
- reducing the application fee from £1,000 to £50 for all applicants;
- removing the requirement for applicants to provide, as part of the application process, information on exactly how they would comply with Postcomm’s mandatory mail integrity code, and
- removing the requirement for both existing licensees and future applicants to provide a financial guarantee.
The current licensing regime came into effect in January 2006. These latest changes form the first of a two stage licensing review. Taking forward the review in two stages has allowed Postcomm to deliver early improvements within the existing framework through stage one while focussing on more detailed changes in stage two.
These changes will not substantially affect Postcomm’s regulation of - or the requirements on - Royal Mail. As the UK’s dominant postal operator, with more than 90% of the mail market and provider of the universal postal service (which includes the ‘one price goes anywhere’ stamp and daily collections and deliveries for all UK addresses), the company must be subject to more rigorous regulatory requirements to protect the interests of customers.
More background information on Postcomm's licensing regime.
Related Documents:
- 16 January 2008 - decision document
- Amendment of the 2006 licensing framework. A decision document (pdf, 277KB)
- 16 January 2008 - modifications notice
- Postal Services Act 2000. Section 14. Notice of proposal to modify the conditions of the USO licence and the standard licence and the DHL Express licence (pdf, 40KB)
- 16 January 2008 - news release
- Postcomm announces simplification of licensing framework
- 16 January 2008 - standard licence & guidance for applicants
- Postal Services Act 2000. Section 11. Standard licence (pdf, 282KB), Postal licence applications - guidance for applicants (pdf, 184KB)
- 16 January 2008 - consultation reponses
-
responses 1 (pdf, 97KB)
responses 2 (pdf, 66KB)
responses 3 (pdf 79KB)
Royal Mail response (pdf, 54KB) - 18 May 2007 - consultation document
- Amendment of the 2006 Licensing Framework (pdf, 217KB).
- 18 May 2007 - news release
- Postcomm reviews current licensing rules.
- 24 March 2006 - revocation notice
- Postal Services Act 2000, Section 11. Notice to revoke licences granted to various postal operators (pdf, 27KB).
- 24 March 2006 - news release
- Postcomm revokes old licences
- 3 November 2005 - news release
- Changes to long term postal licences
- 2 November 2005 - licence modification
- Postal Services Act 2000, Section 14. Modification of conditions of a licence granted to the USO licence and the standard licences (pdf, 199KB)
- 2 November 2005 - decision statement
- Postal Services Commission, decision statement. Modification of the conditions of the USO licence and the standard licences (pdf, 53KB)
- 22 September 2005 - consultation document
- Postal Services Act 2000, Section 14. Notice of proposal to modify the conditions of the USO licence and the standard licences (pdf, 317KB)
- 22 September 2005 - news release
- Postcomm to modify postal licences
- 16 September 2005 - application form and guidance notes
- Form of application for licence under Section 11 of the Postal Services Act 2000 (pdf, 96KB)
- 8 August 2005 - decision document
- Licences under the Postal Services Act 2000: Licensing framework in a fully open market. A decision document. (pdf, 529KB)
- 8 August 2005 - consultation responses
- Responses to Postcomm's proposals for licensing framework in a fully open market (pdf, 2MB)
- 8 August 2005 - news release
- Postcomm publishes licence arrangements for a fully competitive mail market
- 1 June 2005 - revised licence application form and guidance notes (pdf, 74KB)
- These relate to licences under the new licensing framework, coming into effect on or after 1 January 2006. Applications under this framework can be made at any time. Applications for licences under the existing framework, with start dates before 1 January 2006, will be accepted until 30 August 2005. The new framework has not yet been finalised and applications will be accepted on the basis that, if any changes are made to the application process, applicants will expected to comply with these requirements. Similarly, if any changes are made to the draft licence, any licence granted to the applicant will be on these terms. Applicants are, of course, free to withdraw their applications in such circumstances.
- 19 May 2005 - proposals document
- Licences under the Postal Services Act 2000: Licensing framework in a fully open market. A proposals document (pdf, 588KB)
- 19 May 2005 - news release
- Postcomm proposes new licensing arrangements for postal operators
- 22 March 2005 - consultation response
- Mr JR Yates (pdf, 13KB)
- 16 March 2005 - consultation responses
-
Association of International Couriers and Express Services (AICES) (pdf, 25KB),
Communication Workers' Union (CWU) (pdf, 1.8MB),
Diocese of Worcester (pdf, 13KB),
Direct Marketing Association (DMA) (pdf, 51KB),
DX Network Services Ltd (pdf, 32KB),
European Express Association (EEA) (pdf, 18KB),
Federation of Small Businesses (FSB) (pdf, 64KB),
Intercity Communications Ltd (pdf, 416KB),
Mail Competition Forum (MCF) (pdf, 71KB),
Mail Users' Association (MUA) (pdf, 35KB),
Periodical Publishers' Association (PPA) (pdf, 2MB),
Postwatch (2MB), response from Racer (pdf, 1.4MB),
Regional Mail Services (pdf, 3MB),
Royal Mail (pdf, 72KB),
TPG (pdf, 21KB),
UK Mail (pdf, 54KB),
Welsh Language Board (pdf, 35KB). - 30 November 2004 - consultation document
- Licences under the Postal Services Act 2000. Licensing framework in a fully open market. (pdf, 131KB)
- 30 November 2004 - news release
- Postcomm proposes a licensing framework for the fully open market.
