Among the principles that applies to most analyses of market share in connectivity markets, especially for tier-one retail suppliers, is the relationship between market share and profit margin.
In most markets, two suppliers have 80 percent of the profits, researchers note. More pointedly, the market leader can have 60 percent of total profits in the industry. That obviously leaves little share for the other contenders.
This is a nice illustration of the concept.
Looking at market share in the Netherlands mobile market in 2006, one can see that KPN had roughly twice the market share as the second-largest provider, which in turn had share roughly double the number three provider.
Not every market has a perfect match, but over time, at least historically, the pattern has been quite common.
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