RIM hits back at BBerry bans as Lebanon joins in

RIM co-chief Mike Lazaridis in an interview late Wednesday struck back at imminent BlackBerry service bans by drawing the entire industry into the debate. The executive argued that attempts to ban the encrypted e-mail, messaging and web were part of a larger problem with Internet control as a whole and suggested India, Saudi Arabia, the United Arab Emirates and other countries were simply afraid of coping with modern communication. If it were possible to intercept BlackBerry data, it wouldn't stop the flow, according to Lazaridis.

"This is about the Internet," he argued to the WSJ. "Everything on the Internet is encrypted. This is not a BlackBerry-only issue. If they can't deal with the Internet, they should shut it off."

He went on to suggest ulterior motives for those calling for the bans, such as attempts to land political victories by claiming a tougher stance on security. Regardless, he still saw a chance at a solution if the governments were willing to participate in "rational discussion."

Despite the optimism, the situation was compounded on Thursday as Lebanon said it had its own concerns about the effect of BlackBerry services, of which security was one part. Indonesia denied rumors that it would follow Saudi Arabia or the UAE into partial or complete bans, but didn't rule out action. Kuwait has also expressed worry.

The combined bans could significantly curb RIM's market share as it tries to become less dependent on its core North American user base. While Saudi Arabia's ban only affects BlackBerry Messenger, restrictions elsewhere could force millions of customers to switch to competing smartphone platforms like Android and iPhone. UAE officials claim an alternative will be in place on the BlackBerry, but many may be trapped if their companies normally depend on BlackBerry services for work.

The week as a whole has been a setback for RIM. Outside of the launch of the BlackBerry Torch, it has primarily faced word of losses of business to competitors. The European Commission justified picking iPhone and Android over the BlackBerry by arguing that they were better matches in features, security and value.

By Electronista Staff