Free Our Data: the blog

A Guardian Technology campaign for free public access to data about the UK and its citizens


Revealed: how profitable Royal Mail’s Postcode Address File (PAF) really is

The Royal Mail’s Postcode Address File (PAF) is pretty much indispensable for anyone doing direct marketing work. Now the Postcomm report on PAF that we mentioned last week has come up with something not seen before, at least outside RM: the profit and loss accounts for PAF. (Postcomm is the postal regulator, independent of RM.)

Turns out that PAF makes a profit of £1.58m on revenues of £18.36m, an 8.6% return on revenue. Most of the revenues come from PAF resellers (£14.9m). You’ll have to read to Annex 5 of the Postcomm report.

But we’ve looked at what this means in The Guardian. PAF underpins billions of pounds of the Royal Mail’s business, the direct marketing business, and the burgeoning market for satellite navigation (from memory, worth about £400m last year – corrections welcomed).

The price however is without any payment to local authorities, who have been cutting up rough about having no intellectual property rights embedded as suppliers of new address data. (There’s no information from Postcomm about how much PAF revenue comes from the public sector, which would be a useful figure. Royal Mail was chary about providing any information on PAF, one discovers on reading the report.)

RM told us it is “confident” about reaching a settlement. But isn’t this just more of a money-go-round, if they’re paid for supplying data to a product they then buy? Wouldn’t it make more sense to have PAF centrally funded, ringfenced by Postcomm’s recommendations and available for free to all? You might even encourage people to offer updates directly – which would cut the cost of maintenance, which at £9m or so comprises more than half the cost of running PAF for RM.

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