Isn't one of the problems with RM being the breaking of the RM monopoly? Didn't the Government open up the "market" for mail services to "private enterprise", ie a lot of businesses paying employees around minimum wage creaming off the lucrative stuff, therefore wiping out a massive part of the cross subsidy inherent in the RM monopoly and causing the current fall out? Maybe we should just go back to the way it was recreating the monopoly and paying posties a decent wage. A one up for the common weal rather than the "free market."?
I don't think the free market is the best way of allocating resources in a natural monopoly like the postal service. Ref see also Gas, Electricity and Rail networks.