Post Office to compensate postmasters following sale of telecoms business  

Post Office said it has signed a deal to sell its telecommunications business to Shell Energy Retail for an undisclosed sum.

The network added that the postmasters who would have previously benefited from signing-up customers to Post Office’s telecoms business will receive a payment.

The move that follows a strategic review will enable Post Office to concentrate and invest in core mails, banking, bills and travel products.

“This is a good deal for Post Office Limited, our postmasters and our customers. It allows us to concentrate and invest in our core products while ensuring payments to postmasters and continuity of service to customers,” Nick Read, chief executive at the Post Office, said.

Post Office has a strong customer base built over many years in the telecoms market, supplying approximately 500,000 customers with home phone and broadband services.

Customers will be automatically migrated to Shell Energy Retail on 15 March with no service interruption.

“Post Office has built a successful and profitable telecoms business and has recently seen a significant growth in the fibre broadband products. The transfer to Shell has been planned to minimise disruption, with customers continuing to use their existing equipment and support teams,” Meredith Sharples, director of telecoms, added.

“We will also be making a significant one-off payment to Postmasters who have previously sold telecoms products.”