By Jonathan Davies

Royal Mail's 'universal service' - its obligation to deliver post to every part of the UK, six days a week, for the same price - is not under threat, according to Ofcom.

The communications regulator said there is no reason to change the rules after Royal Mail said the universal services was under threat.

The government has guaranteed that the universal service will continue until at least 2021.

Royal Mail chief executive Moya Green last week told a committee of MPs that it costs £7.2bn to fund the universal service and called for subsidies and for rival firms to take on part of the obligation.

It claimed its competitors are able to "cherry pick" the most profitable areas to deliver to.

Ed Richards, chief executive of Ofcom, said: "Ofcom's board has considered all the evidence in the postal market carefully over the past few months.

"We have concluded that there is no present risk to the financial sustainability of the universal service."

Some of Royal Mail's competitors pay it to make deliveries in certain areas of the UK. And Ofcom did concede that Royal Mail could charge slightly more for that service.

Following Ofcom's announcement, Royal Mail's share price fell by 2.5%

Join us on
Follow @freshbusiness