Research In Motion Ltd. RIM-T dodged another bullet Monday when India’s government offered a 60-day reprieve before making a final decision on the future of the country’s BlackBerry service.
After initially setting an Aug. 31 decision deadline, the Ministry of Home Affairs released a statement Monday granting more time for negotiations. Over the next two months, RIM will negotiate with the government and will also provide authorities with access to its encrypted data.
The two parties have been in talks for the past several weeks to negotiate security and privacy issues related to the encrypted e-mails and instant messages sent over RIM’s network.
“RIM have made certain proposals for lawful access by law enforcement agencies and these would be operationalized immediately,” the ministry said in a brief statement. “The feasibility of the solutions offered would be assessed thereafter.”
India’s government is particularly interested in having RIM set up a server within the country, which would make monitoring communication a much easier task.
On that front, RIM lost some of its bargaining position Monday after Nokia Corp., the biggest competitor in India, announced it will install a domestic server to be active by Nov. 5. Speaking to reporters at a mobile phone launch event, D. Shiva Kumar, vice-president of Nokia India, also said the company’s messenger services have been cleared by Indian security agencies.
A plan for RIM will be hashed out over the coming weeks with the help of Canadian government officials in India. “It is our practice to stand up for Canadian companies doing business around the world,” International Trade Minister Peter Van Loan said. But, for now, he is “pleased” because the delay offers some breathing room.
Speculation about a BlackBerry ban focused on the upcoming Commonwealth Games. Some analysts said India’s biggest sporting event in a generation has the government anxious to boost surveillance and prevent terrorism, while others pointed out that shutting down services for a million BlackBerry users would only add to the growing chaos surrounding the spectacle.
Neither side of the argument likely influenced India’s deliberations, said Vikram Sood, former chief of the Research and Analysis Wing, the country’s leading intelligence agency. Indian security officials have been concerned about improving electronic intercepts since the 2008 Mumbai attacks, during which terrorists stayed in touch with their handlers using the latest communications technology.
“This whole thing is driven by the security concerns, not just because of the Games but over the long term,” Mr. Sood said.
Saudi Arabia, the United Arab Emirates and Indonesia, which comprise about 3.5 million of RIM’s 46 million global subscribers, have also expressed security concerns. Earlier this month, a deal was reached with Saudi Arabia but some people worry RIM is conceding too much.
For example, there is speculation that the countries now seeking unfettered access to BlackBerry messages are interested in corporate espionage.
Mr. Sood played down these suggestions. “This is pure security,” he said. “If a person misuses this technology for terrorism, who is liable? Will the Canadian company take responsibility?”
