RIM commits to address UAE's security concerns

03 Aug 2010

Research In Motion has committed to satisfactorily address the security needs of customers as well as governments following the UAE's threat to block some BlackBerry services as authorities have been unable to access encrypted messaging data.

The UAE had threatened to suspend BlackBerry Messenger, email and Web browser services from 11 October until it could access encrypted messages.

RIM's Nasdaq-listed shares were hammered down as much as 2.7 per cent on Monday on the news before they recovered to trade less than 1 per cent.

With its tight email security, which scores highly against features its rivals like Nokia, Apple Inc offer, Blackberry has been able to consistently leverage its main selling point to maintain its market position.

However, governments like the UAE, Saudi Arabia and India have recently voiced security concerns, given that the feature does not make for easy monitoring of BlackBerry messages.

The UAE ban, according to analysts, would affect less than 3 per cent of RIM subscribers exceeding 41 million. They add that investors remain concerned that these spats could spill over to other regions.