Postal sector policy, regulation and operations

For 30 years, Analysys Mason has been a trusted adviser to industry regulators on communications, media and technology issues.

In recent years, the company has extended its expertise into the postal sector, working with clients on issues such as the costing, pricing and regulation of the letters market.

Our postal work is led by Ian Streule, Partner at Analysys Mason, and supported by a team with extensive and broad experience in regulatory consulting services.

In developing expertise in the postal sector, Analysys Mason draws on its extensive understanding of cost modelling, wholesale regulation, stakeholder engagement and policy development gained from many years of working on similar issues in the telecoms sector.

We have worked closely with some of Ofcom's and Postcomm's staff who are responsible for shaping and implementing retail-minus, wholesale cost-based and separate accounting regulations.

Our regulation experts also supported the development of a detailed understanding of Royal Mail's system for the costing of mail products, and the transparency and reporting of that system to public parties.

How we can help you

Our depth of expertise in this area includes:

  • activity based costing (ABC), fully-allocated costing (FAC), long-run incremental costing (LRIC) and financial cost modelling
  • cost model review and expert opinion
  • development of regulatory principles, costing guidelines and allocation methodologies
  • upstream and downstream regulatory pricing analysis
  • industry-facing meetings and consultative support; public-facing reporting and analysis
  • universal service review and market analysis
  • accounting separation and transfer pricing modelling.

We have produced a number of public papers including: 

  • A study into the cost information of Royal Mail Letters
  • A detailed methodological and technical audit of the top-down activity-based fully-allocated costing system of Royal Mail Letters and its documentation, in order to establish a compliant and transparent costing system
  • Advice and recommendations on a number of cost-based pricing issues 

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