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    Royal Mail faces particular challenges:

    - highly unionised workforce still with embedded Spanish practices. Free shares might help this one although the postal workers I know all say, thank you very much but it's still business as usual. All the changes imposed in recent years, while being dressed up as 'efficiencies' have worsened customer service.
    - physical transit of letters declining rapidly and the RM needs massive investment to compete with more efficient movers of things.
    - advantages of prior connection with PO Counters now lost.
    - poor service and high prices still driving people away. Why should I bother going to the post office to send a packet when I can phone Yodel, or similar, and they will collect it from my house, track it electronically on-line, deliver reliably and charge me less?

    All these things make RM less attractive to investors; it's certainly now one of the riskier 'utility' stocks in the FTSE. Never mind, I have a good appetite for risk.

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