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UK's Ofcom proposes changes to Royal Mail's responsibilities

Britain's Ofcom has actually proposed changes to Royal Mail's commitments including socalled secondclass letters delivered on alternate weekdays instead of Saturdays, the regulator stated on Thursday.

The Royal Mail, which has actually been trying to change and modernise its business as it moves its focus to parcels, has actually a. legal commitment to deliver letters Monday through Saturday and. parcels Monday to Friday as well as offer two shipment speeds -. first class for next day and 2nd class for within three days.

Ofcom, which is the regulatory authority for broadcasting,. telecoms, and postal services, stated the propositions are. expected to assist Royal Mail realise yearly net cost savings of. in between 250 million pounds and 425 million pounds ($ 310.9. million and $528.5 million).

As Ofcom's analysis programs, it is no longer financially. sustainable to preserve a network built for 20 billion letters. when we are now only delivering 6.7 billion, Royal Mail stated in. a different declaration, including that the regulator has identified. the urgent requirement for modification.

Royal Mail had advised Ofcom last year to present reforms by. April 2025 at the latest.

The regulator also stated that Royal Mail need to buy its. network to become more effective and added that first class. letters would stay at 6 days a week, and that the price cap. on 2nd class stamps would continue.

(source: Reuters)