RIM’s India concession likely to prompt others
The Indian deal sets a precedent and RIM will find it difficult to turn down other countries seeking similar access. Prashant Singhal, head of the telecommunications division at Ernst & Young India Pvt. in New Delhi, told Bloomberg that “with some of the countries where discussions were on or are still on, like Saudi Arabia, governments may go back and ask for security codes, following in India’s footsteps. Most governments are going to ask for the same security solution RIM has offered.”
Motivated by security concerns, both the United Arab Emirates and Saudi Arabia have threatened to ban BlackBerry services unless RIM allowed access to its encrypted client data to the authorities. Turkey and Indonesia have also expressed security concerns about BlackBerry services.
RIM has reiterated last week that the company maintains a “consistent global standard” for lawful access to its messaging system that “does not include special deals for specific countries.”
RIM fell 6% to US$42.84 in the Nasdaq Stock Market yesterday, the biggest decline since June 29, after a Sanford C. Bernstein Ltd. survey found more companies opting for rival devices such as Apple Inc.’s iPhone, reports Bloomberg.
The shares have lost 37% this year while Apple’s share price has increased by 15%.
