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RIM U-Turn?

Connectivity BusinessbyConnectivity Business
August 2, 2010
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Research In Motion, the Canadian company behind BlackBerry has been sending out mixed messages to its customers and the government of the UAE. RIM had been locked in talks with the UAE over the disclosure of emails and instant messages which came to a…

Research In Motion, the Canadian company behind BlackBerry has been sending out mixed messages to its customers and the government of the UAE. RIM had been locked in talks with the UAE over the disclosure of emails and instant messages which came to a head yesterday when the UAE said to the consternation of thousands of Emirati BlackBerry users that it was blocking the service as of 11th October over “issues of national security.” RIM responded by saying that it promised it would not compromise security in its BlackBerry smartphone, but also said it will respect government requirements. The statement read: “While RIM does not disclose confidential regulatory discussions that take place with any government, RIM assures its customers that it is committed to continue delivering highly secure and innovative products that satisfy the needs of both customers and governments,”

RIM’s shares fell 1.16% yesterday. The BlackBerry’s secure email handling has been key to making it the market leader amongst business people and politicians and is its main selling point against other smartphones such as Apple’s iPhone or the Nokia range.

The Ontario-based company’s statement to customers has left customers in the dark, but it seems that the company is caving in, not just in UAE, but according to a report in The Economic Times of India, to India’s intelligence services. Saudi Arabi has also reportedly set the wheels in motion to block its citizens and visitors to the country from using BlackBerry – a significant move just before Ramadan when millions of pilgrims descend on the Kingdom to perform Hajj.

According to one source contacted by TelecomFinance, although the UAE has security concerns at the forefront of its spat with RIM, there are some commercial considerations to do with state-run telecom companies Etisalat and Du as well. Dubai-based Gulf News was reporting today that Etisalat has announced an alternative BlackBerry. It will offer all BlackBerry customers a free smartphone for those signing up to another 12-month contract. Du is also preparing a non-BlackBerry promotion as well.

All requests for comments from RIM or the Emirati telecoms regulator were rebuffed.

Tags: Etisalat
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