Ill try to answer your questions
The reason we cannot compete is simple say for each letter TNT give to us we get 13p per item a first class stamp is 46p you can see quite easily how the competition laws are against us. We post it for them they offer a cheaper price to the customer and pass it to us to deliver
Government support? Not really any and a bill is going through to privatize us so even less. Possibly helping with the pension deficit
The regulator sets the stamp price not us, and I'll give one example of a stamp price to compare standard 20g or less letter stamp in france 0.58 euros so if you think it's overpriced here
TNT went on strike last year and threatened in oz this year, not sure about others its not like i research it but it proves my point
And Internet parcels are one area we need to improve but our massive infrastructure as you say isn't set up like a couriers to me there is no reason why we cannot offer the same kind of service as a DHL, ParcelForce are at least a few more pound in price and im sure that can be improved they also seem to have removed all link to the fact they are part of the Royal Mail group on their logo! i wonder why that is...
BTW I wish u wouldn't fixate on strikes it's not done lightly and people don't just do it at the drop of a hat..RM are also not the only people to do it, I do think are union is still a bit stuck in the 70s but yeah...
I don't know where your information comes from Jumping or if it is just opinion, but I'm trying to tell you the reality of the situation and what we are fighting to overcome..The letters side of the company lost in the region of 120 million last year thats not only down to the shrinking mail market but the competition laws, before it was brought in even though we make a loss on domestic mail we had the other lucrative side (call it junk mail

) now we have lost that to other companys not held back by the laws that force us to let them in.