and you wonder why. Postcomm has required RM to keep the universal service provision while letting other companies go in and take the profitable local delivery and business delivery in built up areas.
http://us.ft.com/ftgateway/superpage...value=postcomm
Quote:
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Originally Posted by FT.com
Royal Mail posts loss for letters service
By John Willman, Business Editor
Thursday May 8 2008 17:25
Royal Mail's letters business has plunged into a loss, as the number of items posted plummeted last year and private sector competitors continued to win contracts to collect and sort post for large mail users.
The state-owned former monopoly said the number of letters handled daily had fallen from 83m to 80m, with increasing use of the internet and other forms of communication such as text-messages replacing conventional mail.
The letters business had moved from an operating profit of £136m last year to a loss of £3m this year, with many customers trading down to cheaper services as stamp prices rose.
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for full article follow link...
Do you really think it costs 36p to send a letter from Lands end to John O'Groats? Thats all RM get for it and with rising fuel prices and a large fixed cost base, after all you need a postie in John O'Groats whether he is delivering 1 letter or 1000 what did anyone think would happen if with deregulation.