The OFCOM  Statement  issued 27 March 2012 will make significant changes to the postal market. It has laid the foundations of the regulatory framework for the next seven years. Here's a quick summary of some of the key points. 

Lifting of Price Caps  

All of Royal Mail's price caps have been lifted (including those on access prices), except those on 2nd class stamps. Later in the year, Ofcom will set the cap on large letters and packets sent using 2nd class stamps. Consequently, Royal Mail has announced that the price of a first-class stamp will rise from 46 pence to 60 pence next month. Second-class stamps will rise from 36 pence to 50 pence. This is a rise of over 30% and has obviously caused quite a stir. 

Mandated Access 

Royal Mail will still be required to provide standard access to their Inward Mail Centre's (IMC's) for Letters and Large Letters which is good news for competition. This means that the vast majority of the Downstream Access services will remain unaffected. 

Packets are not currently mandated but we believe they should be included and will continue to push for this. Premium D+1 access is also not listed as a mandatory access service. 

TNT Post will continue to provide packet and FirstSort services for as long as these are made available by Royal Mail. 

Reduced notification periods  

The period of notice that Royal Mail needs to provide before implementing price increases has been reduced or completely removed. Notice of changes to Universal Service Obligation (USO) prices has dropped from three months to one month. Any changes to access price and terms required 10 weeks notice, as previously. There is no minimum notice period for changes to non-USO retail prices and non-mandated access services. Previously, three months' notice was required. 

Access Disputes 

Ofcom has powers to intervene in the event of a dispute involving a mandatory access dispute and is encouraging the industry to find a quick and effective way to resolve disputes through alternative dispute resolution processes.