6 Conclusion
86. The postal sector is working within a constantly
changing market, with declining volumes of letters, and a burgeoning
of internet shopping, with the accompanying sharp increase in
parcel volume. Royal Mail claims that Whistl's end-to-end competition
is putting the Universal Service at risk, while Whistl claims
that Royal Mail has an unfair advantage by its VAT exemption for
access services. Neither claim has been proven, but they are illustrative
of the current competitive climate in which these private companies
are working. As Nick Wells, the CEO of Whistl, told us, "If
you want competition, this is not a stroll in the park".[125]
87. While we would not want to stifle competition,
we are adamant that the principle of the Universal Service should
be upheld. We are not persuaded that the Universal Service is
a burden for Royal Mail, but is an obligation that brings revenue
and status to the organisation. Ofcom must continue to monitor
and must be able to respond quickly if the Universal Service is
under threat.
125 Q8 Back
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