Postal competition has created 'no significant benefits'.

The liberalisation of the UK postal service has produced "no significant benefits" for either households or small businesses, a report has said. That is the initial finding of an independent review of the UK postal sector commissioned by the government. It warned there was now a threat to the Royal Mail's financial stability. The Royal Mail's 350-year monopoly ended at the start of 2006, when other licensed operators were given the right to collect and deliver mail. View article here.

While the initial report said homes and small firms had not gained from the increased competition, it said large companies had "seen clear benefits from liberalisation - choice, lower prices and more assurance about the quality of the mail service".

There is still no significant competition in the delivery of letters, due perhaps to "significant barriers to entry." View The Guardian article here.

Think about why potential competitors are unwilling to challenge Royal mail in the area of household letter delivery. In spite of deregulation, what barriers to entry are still likely to exist?