Research In Motion (RIM) is a Canadian wireless device company. It is best known as the developer of the famous BlackBerry smartphones.
Why are the governments interested in this issue?
Of course because of the security issue. Governments tend to prevent terrorists attacks and other threats in order to keep a safe situation in the country. BlackBerry phones are famous for their encryption: it means, that it is much more difficult to trace the information sent/received by these phones. If a terrorist group decides to plan something, conspiracy will be needed, and BlackBerry mobile phones can provide them such feature.
Do you think that their demands are justified?
We think, that yes, the demand would be fully justified, because if not, BlackBerry would lose a large piece of marketplace. On the other hand it would make BlackBerry to be somehow against their own strategy/benefits/advantages. Moreover, it is difficult to make some business against the governments' politics, that is why even such giant companies as RIM have to follow the demands.
What does this mean for users?
Indian demands are giving a new headache to BlackBerry maker Research in Motion after New Delhi threatened a shutdown that could affect one million of the smartphone's 41 million users.
So, let's see to what threats this occurrence will lead and how it can affect RIM's Indian users.
Of course, the hardest hit will cause problems and hamper the work of country's business and market. As we all know, business people rely on the email: today almost all documents are sent by an email. If to start using mobile phones instead of email, companies will lose money on phone calls, because they costs money. Especially in India, where a huge number of companies are international with outsourcing in this country. How much money will the Indian people spend to call for example to the company in Britain to request what work to do. We guess that a lot.
Let see, what "bosses" are saying on this issue. "In the capital market, every second matters. Time lost is money lost. Had it been for couple of hours, that was okay. But it stretched much beyond that," said Jagannadham Thunuguntla, Strategist & Head of Research at SMC Global Securities Limited.
And what about ordinary users? After the repeated shutdowns of email and messaging services that left BlackBerry users with only voice calls and SMS text Indian customers became mad.
What does this mean to the RIM?
More than a million people use BlackBerry in India, the world's second-biggest mobile phone market. RIM has established a strong, but not dominant, the price-sensitive market that is living thanks mostly to its cheap models segment.
We can say That RIM is between the pincers. On the one hand, if the company will give an access to the user's information, privacy policies might be violated. Users won't like if their private information will be used without getting their agreement. Company must work by the word of the law of confidentiality, if not, then the company will need to pay users, who had taken the matter to court on RIM. Company could become bankrupted in one day. On the other hand, if RIM won't give all user's information to the India's Home Ministry, they will block the company's services from the country's mobile phone network.
All in all, in two cases the company will lose position on the Indian market, but if the RIM will choose the second possibility it will lose users only in India (one million out of 41 isn't a big deal). If they do so, in this case the company won't lose the reputation in the other countries.
Should we pay any attention to this issue?
Our answer is Yes, it is needed to pay attention to it and we think that it very important. This issue is directly related to eBusiness security, because it can harm users' rights. There exist two views on this problem: as a user and as an owner of similar to the RIM.
In the first case, company saved the terms of the privacy policies and haven't given user's information to the third party. User saved his confidentiality.
In the second case, as a CEO I and my company haven't violate user's rights. I am clear in front of my customers and I don't need to pay litigation costs to them, but lost 2,4% of users.
