I don't understand how Royal Mail can expect to survive.
Something like half of letters are handled by non Royal Mail services, but even then Royal Mail get a cut under the "final mile" contracts.
Royal mail also have well over 100,000 post boxes.
I don't agree with companies being able to cherry pick areas they operate under, they should be forced to operate all areas and subcontract where they don't operate themselves.
Its difficult, Royal Mail has got a monopoly and it can be argued that there should be competition to retain value for money - but nobody could possibly start a national postage service overnight.
I see it very similar to BT/Open Reach etc and telephone/internet services - if its regulated correctly it will all work out.