In recent months there has been a noticeable increase in both applications and issuing of postal operator licenses in the UK.
Since the full market opening on 1 January 2006, Postcomm issued 59 licenses to postal operators, in addition to Royal Mail.
You must apply for a postal licence if you plan to carry mail weighing less than 350g and costing less than £1 to post, which is otherwise excepted from the need to hold a licence under the Postal Services Act 2000.
Any organisation or individual can apply for a licence.
The regulator has been keen to encourage small and medium sized operators into the market, providing they can meet minimum obligations (like safety and security). And if your licensed area turnover is less than £10 million, there is a low licence fee payable of just £50. Operators with a licensed area turnover in excess of £10 million per annum also have to pay an annual licence fee, which is based on market share.
The ‘standard licence’ is the one most commonly granted to successful applicants. Licenses are issued for a rolling 10 year period. They require each licensee to provide information about its own performance as well as set up systems to handle customer complaints.
The transference of regulatory powers from Postcomm to Ofcom has promised a ‘lighter touch’ regulatory regime so it will be interesting to see what effect (if any) this has on the issue of licenses.
