BlackBerry Said to Face Possible Ban in India Over Security Considerations - Bloomberg
Research In Motion Ltd.’s BlackBerry service may be banned in India unless the Canadian company agrees to resolve security concerns, according to a government official with direct knowledge of the matter.
India has told Research In Motion to set up a proxy server in the country to enable security agencies to monitor e-mail traffic, according to three government officials, who declined to be identified as the information is confidential.
Research In Motion faces increased competition from smartphones including Apple Inc.’s iPhone in India as the world’s second-biggest mobile-phone market prepares to roll out third-generation wireless services. The BlackBerry maker had some services blocked in neighboring Pakistan this year, and the United Arab Emirates is considering tightening security.
“RIM has the best encryption, significant subscribers, and a brand that’s known across the world,†said Anshul Gupta, principal research analyst at Gartner Inc. in Mumbai. “This isn’t the first time a government has had the fear that terrorists could use BlackBerry services for international communication.â€
Resolving the concerns is crucial for Research In Motion to maintain its market leadership in India, Gupta said.
Address Concerns
The Waterloo, Ontario-based company has assured the Indian government that it will address the nation’s security concerns, U.K. Bansal, a special secretary in the home ministry, tasked with domestic security, said today.
“Whenever we have concerns we bring that concern out,†he said. “We expect those concerns to be addressed.â€
Research In Motion spokesman Satchit Gayakwad declined to say if the company had been contacted by India’s telecommunications department.
“RIM does not disclose confidential regulatory discussions that take place with any government,†Gayakwad said from Mumbai. “However, RIM assures its customers that it is committed to continue delivering highly secure and innovative products that satisfy both the needs of consumers as well as governments.â€
India’s three largest mobile phone operators, Bharti Airtel Ltd., Reliance Communications Ltd. and Vodafone Group Plc’s local unit all offer BlackBerry services and phones in India.