U-turn on the mail monopoly?

POST Office operator Consignia is set to be protected against the full brunt of competition amid fears that it will be unable to maintain delivery services if the market is opened up.

Postal regulator Postcomm has indicated it is prepared to back down from plans to end Consignia's monopoly after its losses have grown from £1m to £1.5m a day. There are fears that the deficit will soar if PostComm proceeds with its plan to allow competitors to deliver bulk mail from April.

Postcomm chairman Graham Corbett said he did not believe the regulator would 'stand absolutely rigid'. It is understood Postcomm is also considering an increase in the price of residential mail to insulate Consignia against the financial impact of business mail.