OFCOM USO Consultation: call for input to DMA response

The OFCOM USO Consultation: What is it?

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Ofcom’s current review of the universal postal service seeks to ensure that mail remains reliable, accessible, and financially sustainable. This update primarily affects Royal Mail’s wholesale products—particularly DSA (Downstream Access) services—by adjusting delivery schedules and speeds in line with shifting mail volumes. The ultimate goal is to preserve choice for organisations while reducing the operational cost pressures that often lead to price increases.

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As letter volumes continue their long-term decline, maintaining a six-day network for all mail products has become increasingly expensive. By focusing Saturday delivery on only one premium product and standardising other services to Monday-to-Friday schedules, Royal Mail can reduce overheads associated with underutilised weekend resources. The DMA acknowledges the operational rationale behind these reforms, we remain committed to advocating for Royal Mail to hold prices. By removing some of the cost burdens that fuel price hikes, this consultation aims to create a more stable environment for brands and marketers who rely on mail for both transactional and promotional purposes.

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The changes

DSA Standard: Currently delivered in two working days (D+2) for many bulk mail items, this service will largely transition to a D+3 schedule, aligned with Monday-to-Friday deliveries. This move mirrors Second Class timings, offering predictable performance without premium pricing.

DSA Priority: The only DSA option retaining Saturday deliveries, D+2 Priority is designed for mailers who require a quicker turnaround. Because this service maintains a six-day delivery window, it comes at a higher price point. However, Royal Mail’s broader cost savings should help curb further increases, and the DMA will continue to press for competitive, transparent pricing.

DSA Economy: For less time-sensitive mailings, DSA Economy will continue to operate at a slower speed (e.g., D+5), though also shifting to a Monday-to-Friday schedule. While it remains the most cost-effective option, its reliability is set to improve given renewed focus on timely weekday deliveries.

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What It Means for Direct Marketers

In the near term, organisations can expect more consistent and predictable delivery windows. While some advertisers may be concerned about the reduction in Saturday mailing, that has been the lowest volume day according to Jicmail data mitigating any risks advertisers might fear.

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Provisionally, the DMA believes that, by concentrating operational resources on weekdays, Royal Mail aims to boost on-time performance—an essential factor for campaigns relying on precise customer engagement. Quite potentially, this development as an opportunity for marketers to achieve greater ROI through well-targeted campaigns that arrive when consumers are most receptive.

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Call for views

The DMA will be submitting our response to the consultation. Let us know know your views by March 14 by writing to Michael.Sturrock@dma.org.uk, and we will incorporate them in our response.

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The DMA’s final submission will be reviewed and approved by the Print Council on their next meeting on 25 March.

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You can read more and supply your own response to the Ofcom USO here

The final closing date is April 10.