The rule of three had its origin in the world of communication with the American declaration of Independence and its stirring statement of life liberty and the pursuit of happiness. The business world accepted it in a different perspective namely that in all endeavors, three Companies would account for a dominant share of any business.
Witness the world of telecom. Three Companies account for over 75% of the demand in USA, UK, Germany and China. (Figures 1, 2, 3 and 4)
In India, however, the law does not seem to work (Figure 5).
Not for long, however! With the merger of Reliance with Air Cell and the proposed mega merger of Vodafone and Idea the numbers game is getting bigger. Jio’s aggressive foray to garner market share will ultimately prove the rule of three in the Indian context as well.
Table 1. Market Share of Top 3 Telecom Players in five countries
Country | Top 3 Companies | Market Share |
---|---|---|
USA | 1. AT & T Inc. 2. Verizon Communications, Inc 3. Comcast Corporation | 84% |
UK | 1. BT Group 2. Sky Plc 3. Vodafone UK Ltd | 71% |
Germany | 1. Deutsche Telekom AG 2. Vodafone GmbH 3. Telefónica Germany GmbH & Co. OHG | 84% |
China | 1. China Mobile Communications Corporation 2. China Telecommunications Corporation 3. China United Network Communications Group Co., Ltd. | 100% |
India | 1. Airtel 2. Vodafone 3. Idea Cellular | 58% |
Author: Arvind Rathore