Why is the Royal Mail losing its 150-year-old monoploy

A.� On 26 March a new law was introduced that enables 'PostComm',�the new Post Office regulator,
to give licences to other companies enabling them to deliver post costing less than �1.

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Q. What other companies have expressed an interest in competing with the Royal Mail
A. PostComm chairman, Graham Corbett, says bus operators could be one possibility as they already have local delivery networks - be they for passengers not post - already set up. Other obvious contenders are other European post offices and the express delivery companies.

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Q. Won't this mean that other companies will come in and bid for the highly profitable business routes, destroying the national delivery network and leaving the Royal Mail with the bits no one wants
A. Corbett says he won't be allowing 'cherry picking of busy areas' and says he will ensure that the national delivery network does not suffer. Also, for your future reference, the Royal Mail has just spent �2 million renaming itself Consignia.

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Q. Why the new name
A. The new name is supposed to illustrate that the company does a great deal more than just deliver post and help it to 'drive up customer service and performance.' It also signifies the company's move to a PLC, wholly owned by the government.

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John Roberts, chief executive of Consignia, says: 'Consignia is not a cosmetic change, far from it. Consigna is a new holding company striving to ensure that the customers of all its brands - Royal Mail, Parcelforce Worldwide and the Post Office network get the best possible services and products. It intends to remain the biggest player in the UK market and also to be a major player internationally.'

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Q. So, can we expect a poorer quality of service whether it be from Consignia or another company
Roberts maintains that Consignia will strive to continually improve the service. And, a new watchdog, Postwatch, has just been set up to ensure that services only improve and to regulate prices.

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By Anna Tobin