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The Postal Services Act 2000 ("The Act") introduced a series of fundamental changes to the UK mail sector. These included the abolition of the Post Office’s exclusive privilege over the conveyance of letters weighing less than 350 grams and charged at a price of less than £1; its replacement by a licensed area of equivalent extent, and the creation of an independent regulator, The Postal Services Commission ("Postcomm") to administer it. Postcomm’s primary duties are to ensure the continuation of a universal postal service, to promote effective competition, and to consider applications for, grant, and monitor compliance with postal licences. Document exchange services, which had been authorized under a class licence since 1982, were specifically excluded from the licensed area under the new Act. In May 2002, following a trial period with limited interim licences (of which DX secured the first in September 2001) and extensive study and consultation, Postcomm announced its substantive market opening policy for the UK postal sector. This involved a 3-phase approach to market opening, under which 30 per cent. (by value) would be opened up to competition from 1 January 2003 (Phase 1), and a further 30 per cent. from 1 April 2005 (Phase 2), with full market opening from 1 April 2007 (Phase 3). Postcomm’s strategy to achieve these objectives was to invite applications for long-term licences (with a minimum term of 7 years) to compete with Royal Mail’s universal services for certain specified activities. DX was again successful in obtaining the first of these licences in December 2002. However on 18 February 2005, following a review of developments since the introduction of Phase 1 together with further extensive consultations, Postcomm announced its formal decision to bring forward full market opening to 1 January 2006, and to abolish the intermediate Phase previously planned for 1 April 2005. Under full market opening postal operators wishing to convey letters falling within the licensed area as defined in the Act are still required to hold a licence from Postcomm. New licences with a minimum duration of 10 years were introduced to give effect to the post-January 2006 regime, and DX received its new licence in December 2005. Under the new regime licensees are free to deliver mail of any description from any customer to any address, and no part of the market remains reserved to Royal Mail. However although licensees are free to offer any service that meets customers’ needs, in doing so they must comply with a number of requirements designed to protect both customers and the wider postal market. These include: lodging with Postcomm a financial (bank) guarantee – or other approved arrangement – so that should the licensee cease trading, adequate provision is in place to enable mail already in the pipeline to be delivered by an alternative operator compliance with a Code of Practice covering all aspects of mail security compliance with a Code of Practice dealing with mail intended for one operator which finds its way into the system of another a range of reporting requirements both to Postcomm and to Postwatch, the statutory body representing the interests of users of postal services
Regulation in the Republic of Ireland Under Statutory Instrument 616/2002 (the ‘‘Regulation’’), any postal service provider in the Republic of Ireland with an annual turnover of more than 500,000 Euros is obliged to apply for authorisation from the Office of the Commission for Communications Regulation to provide a postal service. DX Network Services Ireland Limited received confirmation of its authorisation on 24 March 2004. As with the UK and other EU Member States, the provisions of the Directive will require further deregulation in the future. This is reflected in the Regulation, which, from 2006, reduces the reserved area threshold to the delivery of all items weighing less than 50 grams.