BlackBerry faces data services ban in the UAE, Saudi Arabia over "security risks," users upset
BlackBerry maker Research In Motion (TSE.RIM) received a blow, Sunday, when the telecom regulators in the United Arab Emirates (UAE) and Saudi Arabia said they'll suspend the device's data services, citing security concerns.
Enlarge This ImageStelios Varias / Reuters
A BlackBerry smartphone user is pictured checking email in Washington
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Both UAE and Saudi Arabia said, Sunday, they'll suspend BlackBerry services later this year as the high-level encryption feature in the device prevents government authorities to monitor, access or intercept data transmission.
The UAE said the BlackBerry's messenger, e-mail and web browsing services will be suspended from October 11, the telecom regulator in the oil-rich kingdom of Saudi Arabia said they have directed local operators not to support the messenger function for BlackBerry users, starting this month.
UAE cited security concerns but the Communications and Information Technology Commission (CITC) of Saudi Arabia did not explain its move.
BlackBerry hit regulatory roadblocks in the Middle-east earlier this month when UAE warned that the device poses a "national security risk."
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RATE: Last week, UAE's Telecommunications Regulatory Authority had said BlackBerry devices are not covered by the country's rules on safety, emergency and national security that were implemented in 2007, a year after BlackBerry devices were launched in the country.
According to the regulator, BlackBerry operates outside the country's laws and poses "judicial, social and national security concerns for the UAE."
The regulator noted that data from BlackBerry communications is encrypted and managed outside of the UAE. "Currently, BlackBerry operates beyond the jurisdiction of national legislation, since it is the only device operating in the UAE that immediately exports its data offshore and is managed by a foreign, commercial organization," it had said.
"We have been working for a long time to resolve these critical issues, with the objective of finding a solution that safeguards our consumers and operates within the boundaries of UAE law," the regulator had said in the statement.
"As a result of how BlackBerry data is managed and stored, in their current form, certain Blackberry applications allow people to misuse the service, causing serious social, judicial and national security repercussions," the regulator had said.
The regulator had said it will speak to BlackBerry maker Research In Motion (RIM) about the security flaws and try to find a way that will bring the device within the ambit of local laws.
According to sources close to the development, RIM had failed to address the security concerns to the satisfaction of the telecom authorities of UAE and hence the latter was prompted to take the step.
The decision taken by the UAE telecom regulator, however, has left thousands of BlackBerry users miffed.
There are over half a million BlackBerry users in the UAE, mostly business executives and expatriates and the device soared in popularity due to the high level of encryption used by RIM.
The security features behind the BlackBerry were originally designed to provide corporate users with the ability to transmit their information wirelessly with the knowledge that not even RIM could access their data.
Hence, while UAE regulators cite "security concerns" for their decision, BlackBerry users said it infringes their freedom of speech and expression.
"It's not right. They (the regulator) knew from the beginning that BlackBerry's server would not be in the country but elsewhere (in Canada). They also knew that data transmitted over the device will be encrypted. Yet they kept silent at that time," said Javed Bin Maktoub, head of a local construction company.
"What made them wake up now? Security reasons or the unforeseen popularity of the device?" Maktoub said. "If other countries like the US and the UK have no problem with BlackBerry services, why should our country have?"
While Telecommunications Regulatory Authority director-general Mohamed al-Ghanim said in a statement that "With no solution available and in the public interest...Blackberry Messenger, Blackberry E-mail and Blackberry Web-browsing services will be suspended until an acceptable solution can be developed and applied," a high-level government source said the decision was not made "hastily" but was a result of "two years of negotiations and (unfulfilled) promises for a solution by the service provider."
"We have asked them several times to put their server here (in the UAE) but they are offering solutions other than that," the source said. "But that can't be allowed to happen. We are a sovereign country and our laws should be respected."
Hence, the authorities were forced to direct Emirates Telecommunications Corp. or Etisalat, and Emirates Integrated Telecommunications Co. to stop BlackBerry services, the source said.
However, "We are ready to revoke the decision as soon as the company (RIM) agrees to our request," the source added.
This is not the first time RIM has locked horns with government authorities who demand access to BlackBerry's encrypted transmissions. In the past, BlackBerry risked closure of services in India after it failed to heed the government's request for allowing access to the transmitted data.
Messages transmitted by BlackBerry rivals such as Apple's iPhone and Nokia smartphones are relayed with a lower level of encryption and hence do not face similar problems.
However, market analysts said investors will shrug off the news as it's just a temporary setback for the company.
"This is going to be resolved," said Dubai-based Al Mal Capital PJSC analyst Irfan Ellam. "These are issues that have been brought up in other countries, where they've found a solution, and there's no reason to think they won't do the same here."
However, it will take time, said Dubai-based investment bank Shuaa Capital's telecom analyst Simon Simonian.
"The UAE doesn't want to take any chances and they want to monitor what is going on in the country," Simonian said. "The security features that made BlackBerry so popular now "have become an issue of national security for the government."
RIM did not offer any comment. The company is expected to unveil its first slider BlackBerry device – Bold 9800 – as well as the much-awaited OS - BlackBerry 6. Shares of the Canadian company closed up 2.55 percent at C$59.15 on Friday.
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BlackBerry maker Research In Motion (TSE.RIM) received a blow, Sunday, when the telecom regulators in the United Arab Emirates (UAE) and Saudi Arabia said they'll suspend the device's data services, citing security concerns.
Enlarge This ImageStelios Varias / Reuters
A BlackBerry smartphone user is pictured checking email in Washington
Related Articles
Million BlackBerry users face hit after Gulf bans (11:32 am)
BlackBerry maker to launch tablet in November: report (Jul 30)
Emboldened RIM Readies Touchscreen BlackBerry (Jul 30)
Related Topics
iPhone
Dubai
United Arab Emirates
India
A BlackBerry smartphone user is pictured checking email in Washington
Both UAE and Saudi Arabia said, Sunday, they'll suspend BlackBerry services later this year as the high-level encryption feature in the device prevents government authorities to monitor, access or intercept data transmission.
The UAE said the BlackBerry's messenger, e-mail and web browsing services will be suspended from October 11, the telecom regulator in the oil-rich kingdom of Saudi Arabia said they have directed local operators not to support the messenger function for BlackBerry users, starting this month.
UAE cited security concerns but the Communications and Information Technology Commission (CITC) of Saudi Arabia did not explain its move.
BlackBerry hit regulatory roadblocks in the Middle-east earlier this month when UAE warned that the device poses a "national security risk."
EMAIL PRINT
TEXT SIZE:
SHARE
RATE: Last week, UAE's Telecommunications Regulatory Authority had said BlackBerry devices are not covered by the country's rules on safety, emergency and national security that were implemented in 2007, a year after BlackBerry devices were launched in the country.
According to the regulator, BlackBerry operates outside the country's laws and poses "judicial, social and national security concerns for the UAE."
The regulator noted that data from BlackBerry communications is encrypted and managed outside of the UAE. "Currently, BlackBerry operates beyond the jurisdiction of national legislation, since it is the only device operating in the UAE that immediately exports its data offshore and is managed by a foreign, commercial organization," it had said.
"We have been working for a long time to resolve these critical issues, with the objective of finding a solution that safeguards our consumers and operates within the boundaries of UAE law," the regulator had said in the statement.
"As a result of how BlackBerry data is managed and stored, in their current form, certain Blackberry applications allow people to misuse the service, causing serious social, judicial and national security repercussions," the regulator had said.
The regulator had said it will speak to BlackBerry maker Research In Motion (RIM) about the security flaws and try to find a way that will bring the device within the ambit of local laws.
According to sources close to the development, RIM had failed to address the security concerns to the satisfaction of the telecom authorities of UAE and hence the latter was prompted to take the step.
The decision taken by the UAE telecom regulator, however, has left thousands of BlackBerry users miffed.
There are over half a million BlackBerry users in the UAE, mostly business executives and expatriates and the device soared in popularity due to the high level of encryption used by RIM.
The security features behind the BlackBerry were originally designed to provide corporate users with the ability to transmit their information wirelessly with the knowledge that not even RIM could access their data.
Hence, while UAE regulators cite "security concerns" for their decision, BlackBerry users said it infringes their freedom of speech and expression.
"It's not right. They (the regulator) knew from the beginning that BlackBerry's server would not be in the country but elsewhere (in Canada). They also knew that data transmitted over the device will be encrypted. Yet they kept silent at that time," said Javed Bin Maktoub, head of a local construction company.
"What made them wake up now? Security reasons or the unforeseen popularity of the device?" Maktoub said. "If other countries like the US and the UK have no problem with BlackBerry services, why should our country have?"
While Telecommunications Regulatory Authority director-general Mohamed al-Ghanim said in a statement that "With no solution available and in the public interest...Blackberry Messenger, Blackberry E-mail and Blackberry Web-browsing services will be suspended until an acceptable solution can be developed and applied," a high-level government source said the decision was not made "hastily" but was a result of "two years of negotiations and (unfulfilled) promises for a solution by the service provider."
"We have asked them several times to put their server here (in the UAE) but they are offering solutions other than that," the source said. "But that can't be allowed to happen. We are a sovereign country and our laws should be respected."
Hence, the authorities were forced to direct Emirates Telecommunications Corp. or Etisalat, and Emirates Integrated Telecommunications Co. to stop BlackBerry services, the source said.
However, "We are ready to revoke the decision as soon as the company (RIM) agrees to our request," the source added.
This is not the first time RIM has locked horns with government authorities who demand access to BlackBerry's encrypted transmissions. In the past, BlackBerry risked closure of services in India after it failed to heed the government's request for allowing access to the transmitted data.
Messages transmitted by BlackBerry rivals such as Apple's iPhone and Nokia smartphones are relayed with a lower level of encryption and hence do not face similar problems.
However, market analysts said investors will shrug off the news as it's just a temporary setback for the company.
"This is going to be resolved," said Dubai-based Al Mal Capital PJSC analyst Irfan Ellam. "These are issues that have been brought up in other countries, where they've found a solution, and there's no reason to think they won't do the same here."
However, it will take time, said Dubai-based investment bank Shuaa Capital's telecom analyst Simon Simonian.
"The UAE doesn't want to take any chances and they want to monitor what is going on in the country," Simonian said. "The security features that made BlackBerry so popular now "have become an issue of national security for the government."
RIM did not offer any comment. The company is expected to unveil its first slider BlackBerry device – Bold 9800 – as well as the much-awaited OS - BlackBerry 6. Shares of the Canadian company closed up 2.55 percent at C$59.15 on Friday.
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