Tuesday, December 19, 2006

A (one-time) house divided

Until 1981, BT and Royal Mail were one organisation (The Post Office). However, since the split, there have been major business rivalries between the two companies.

BT provides the telecommunications network and an Internet service which offer increasing opportunities for e-substitution with a growing number of communications going by e-mail instead of the post. For its part, Royal Mail once ran a rival telephone network (National Network) and today operates a rival telephone service (HomePhone).

That's fine - as long as the competition is fair. But telecoms regulator Ofcom has just launched an enquiry into Post Office Limited's telephone service which has been accused of 'slamming' - that is, switching customers from BT without their permission.

Postwatch’s remit only covers postal services; however if subpostmasters and Post Office Ltd are to benefit from this wider offering of products, confidence in the Post Office Ltd brand must remain.

1 Comments:

Anonymous Anonymous said...

Business rivalry/competition should be designed to leave customers free to choose between services, but it must be clear what each service offers.

The government itself is in danger of undermining confidence in the Post Office brand by taking away so many services we have grown used to being available over the counter.

1:46 pm GMT  

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