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Author Topic: Royal Mail loses postal monopoly
aRoused
rabble-rouser
Babbler # 1962

posted 18 February 2005 08:12 AM      Profile for aRoused     Send New Private Message      Edit/Delete Post  Reply With Quote 
BBC

quote:
The UK's postal service market will be fully liberalised from 1 January 2006, regulator Postcomm announced, following three months of consultation.

From that date, any licensed operator will be able to deliver mail to business and residential customers.

Royal Mail, which controls 99% of the market, welcomed the news but the main postal union said it was "ill-advised".


Argh. Yeah, because privatizing the railways under Thatcher worked sooo well, let's try this too! Actually, the Royal Mail is not a Crown corporation in the UK, I think it was Thatcher that privatized it, too, but now any company can set up its own delivery service, postboxes, etc.

Tony Blair's government is absolutely obsessed with providing 'choice', as if having a multitude of options to pick from makes your life easier. Instead, you wind up either sticking with what you know, or you spend all of your waking hours trying to choose the best option.

Bloody hell, it's not a life anymore in Blair's Britain, between people shifting their accounts, mortgages, cell phones, car loans, credit cards, etc, etc, etc, around shopping for the best rate, it's a wonder anyone gets any other work done!


From: The King's Royal Burgh of Eoforwich | Registered: Dec 2001  |  IP: Logged
Reality. Bites.
rabble-rouser
Babbler # 6718

posted 18 February 2005 08:43 AM      Profile for Reality. Bites.        Edit/Delete Post  Reply With Quote 
Seems to me that the startup costs for a mail (non-courier) company would be enormous.
From: Gone for good | Registered: Aug 2004  |  IP: Logged
aRoused
rabble-rouser
Babbler # 1962

posted 18 February 2005 10:41 AM      Profile for aRoused     Send New Private Message      Edit/Delete Post  Reply With Quote 
True, but what will likely happen is that existing courier companies will cherry-pick the most profitable parts of the service, and the Royal Mail will wind up only handling delivery to rural locations. Then, because they can't subsidize rural mail delivery on the back of the more profitable urban routes, rural mail prices will soar. Similar to what we were concerned would happen when UPS took Canada Post to the WTO about a year or so ago.

So Blair's government thinks this will provide more choice and cheaper rates, but what it really will do is provide cheaper rates to the majority urban population and more expensive rates to the minority rural population.

I didn't actually think the Blairites were anti-countryside, despite the foxhunting ban (which I support), but now I'm starting to wonder.


From: The King's Royal Burgh of Eoforwich | Registered: Dec 2001  |  IP: Logged
Rufus Polson
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Babbler # 3308

posted 18 February 2005 03:14 PM      Profile for Rufus Polson     Send New Private Message      Edit/Delete Post  Reply With Quote 
quote:
Originally posted by aRoused:

So Blair's government thinks this will provide more choice and cheaper rates, but what it really will do is provide cheaper rates to the majority urban population and more expensive rates to the minority rural population.

I think you're overoptimistic. I'd say that rates will increase everywhere, but in the city it will be more gradual and camouflaged by a "confusopoly" similar to that used by long distance, cellular etc.
(Confusopoly is a term coined by Scott Adams, the Dilbert guy, to refer to outfits defining prices in all different, complex terms so that it's very difficult to tell which is cheaper or how much anything will cost)


From: Caithnard College | Registered: Nov 2002  |  IP: Logged

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