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British study: privatization of postal service threatens its future

Benefits large companies, no benefit to users.

British study: privatization of postal service threatens its futureby Terry Macalister, The Guardian

BRITAIN, May 7, 2008— The government's strategy of opening up the postal market to private sector competition has provided "no significant benefits" for consumers and smaller businesses, while representing a "substantial threat" to the future of the Royal Mail, an independent report commissioned by ministers warned yesterday.

A major shakeup is needed in the way the industry is regulated if Britain is to benefit from a strong, competitive and cost-effective postal service, said the damning report by former media regulator Richard Hooper for business secretary John Hutton.

Large companies have benefited from the full liberalisation of the postal market since 2006, gaining more choice, lower prices and better quality products, but "there have been no significant benefits for smaller businesses and domestic consumers," said the report. . .

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  Postal privatisation a threat to service with no benefit to customers, says report, by Terry Macalister, The Guardian, May 7, 2008

Posted: May 15, 2008

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