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Sep 01 2010

BlackBerry wins the battle but not the war in India

Posted by in Mobile News

Ban still looms despite temporary truce after BlackBerry maker RIM grants authorities access to ‘secure’ data passed between devicesAfter weeks of standoff between south Asia and North America, the Indian authorities yesterday won limited access to data from BlackBerry smartphones. The 800,000 users of the devices in the country had been threatened with a blackout because of the Delhi government’s growing fear that militants could use the BlackBerry’s secure network to plot terror attacks without fear of being monitored.The authorities can now get access to some data. The arrangement will be evaluated for 60 days, but the prospect of a ban still looms large for Research in Motion (RIM), the Canadian company behind the smartphones.India has also opened up a front against Google and Skype. The home secretary, GK Pillai, said the internet companies were being asked to set up servers in India so that the authorities there could monitor data.India’s moves underline the anxieties of emerging governments about the reach of western communications groups, and particularly the BlackBerry.The United Arab Emirates is threatening to block BlackBerry services by 11 October if it does not get access to encrypted messages. Indonesia, Saudi Arabia and Lebanon are also reviewing the future of BlackBerry services in their countries; all cite security fears over the level of encryption afforded to communication sent between devices.However, this strategy risks alienating the very global businesses such countries are trying to attract, because the employees of multinationals increasingly rely upon BlackBerrys to conduct their day-to-day work.RIM’s problems – its shares have fallen to a 17-month low – lie in the way BlackBerry devices get access to the internet and email through secure centres around the world using specialist encryption.BlackBerry’s Messenger instant-messaging service and its email service have different levels of security, and email security depends on the server being used. Since the BlackBerry was launched 11 years ago, it has been the mobile phone of choice for business users and governments across the world. But RIM’s reputation for producing apparently impenetrable security for high-profile customers is at risk of being irreparably damaged by these new demands.Last Thursday, RIM said it would lead an industry forum on how to allow law-enforcement agencies to get access to communication networks while not encroaching on the security needs of private enterprises. That was all well and good, Indian government sources told Reuters, but the country wanted a technical solution – and quickly. “The government’s position does not change,” the source said. “We are hopeful [RIM] will come up with some solution.”Risk that RIM will lose users’ trustThe problem for RIM is that if it gains governments’ trust by giving them the means to see messages, it will probably lose the trust – and perhaps the business – of users who have previously relied on its security as a way of avoiding the government’s gaze.A university professor in UAE, who wishes to remain anonymous, told the Guardian: “The issue has received a lot of coverage in the UAE, but nothing compared to the conversation ‘on the ground’. Since virtually every Emirati aged 17 to 40 owns a BlackBerry and uses the messenger feature constantly, this has been of great concern to them.”I’d guess that around 30% accept this is for security reasons, while the rest believe it to be, at the least, intrusive. The latter believe it to be a response to a number of fairly high-profile Emiratis being attacked, derided, vilified via the messenger broadcast service. Emiratis send many broadcasts daily, and gossip runs through the community like wildfire.”One of the biggest issues for the countries concerned is this messenger broadcast function. Allowing users to send one-to-many messages to everyone in their contacts book has proved an effective and galvanising way of spreading comment, and is often used as a vehicle for anti-establishment opinion – something UAE authorities are sensitive about. “The government walks a very thin line between appearing liberal and modern to the west, and traditional and Islamic at home,” the professor said. “This issue cuts to the heart of the impossibility of doing both at once.The professor, who has owned a BlackBerry for more than a year, said he would have no qualms in switching to another device if RIM’s concessions infringed his right to communicate without fear of government interception. “I can only presume RIM is aware of this and is treading carefully,” he said. “I have faith in the company, as it clearly does little for them to give up what makes the device so valuable – its security.”He added: “This has been called another public relations disaster for the UAE, and I fail to see how someone will not point this out to the rulers – and they are exceptionally concerned with remaining attractive in the eyes of western governments,” he added. “This has done them no favours with the business community internationally nor with the majority of locals and expats domestically.”Falling foul of authorityBeing on the wrong side of officialdom is not new to the Canadian manufacturer. Ironically, given the more recent bout of security concerns, three years ago the French government banned its officials from using BlackBerry devices, citing fears that communication could be intercepted by countries hosting the enterprise servers – namely Canada, the US and the UK. When Barack Obama took office in January 2009, the BlackBerry he had used on the campaign trail was replaced with one with extra security, approved by the US National Security Agency, which was concerned about people trying to tap it.Further east, security demands meant negotiations to take the BlackBerry to China and Russia took two years to resolve in both countries.Unlike Indian officials, who have slipped anonymous tidbits and soundbites to the news agencies, RIM has remained tight-lipped about its negotiations. In a rare public statement addressed to customers earlier this month, the Canadian manufacturer said it co-operated with all governments to a consistent level: “Any claims that we provide, or have ever provided, something unique to the government of one country that we have not offered to the governments of all countries, are unfounded.”The complexity and range of security solutions offered by RIM may be the source of the company’s friction with governments, said Leif-Olof Wallin, vice-president of the IT research company Gartner. “What seems to be the big challenge is that lots of BlackBerry service and infrastructure is not very well understood by the regulatory authorities or by its users,” Wallin said. “Although physically it is the same device, it can be used in lots of different scenarios.”Financially, Wallin said, a ban in India would have negligible impact on RIM’s global business, although the country was the second-largest mobile phone market in the world behind China. And RIM would emerge less tarnished than the countries involved.Informa Telecoms & Media forecasts that there will be more than 600,000 BlackBerry sales in India this year and that India’s smartphone market will have reached approximately 12m – a figure forecast to grow to 40m by the end of 2015.”At the very last minute there will be an agreement in place,” Wallin predicted. “Banning BlackBerry devices in the country has significant implications affecting foreign diplomats, foreign enterprise executives. It would be a major inconvenience to lots of important allies.”Monitoring messages on a case-by case basisThat is not to say that the Indian or UAE governments will be given free rein to tap emails or messenger messages. “Our interpretation of RIM’s public statements is that the company is willing to facilitate mobile operators to lawfully intercept some messages,” said Wallin.”And BlackBerry will – on a case-by-case basis – be assisting network operators to decrypt BlackBerry Messenger, we think. With email between the BlackBerry and BlackBerry Enterprise Server, RIM simply does not have the capabilities to decrypt it, and the encryption key is unique to each user.”Though some of our clients are worried about what to do in case a ban is put in place, it looks like BlackBerry [manufacturer RIM] is benefiting from this as they’re not caving in – they’re being perceived as an honest secure company.”Gail Thompson, owner of a landscaping company based in Dubai and a BlackBerry owner, said the ill thought-out warnings were not atypical of Emirates officials. “I’m expecting them to backpedal on it,” Thompson said. “I’m anticipating that [the authorities will] issue a blanket mandate, then realise that it’s unworkable – that’s what I’m I’m hoping. I think they’ve had a kneejerk reaction to things.”They need to take into account that business people are coming into the country and [the UAE doesn't] need another hurdle in the economy,” Thompson said. “People are thinking that it’s ludicrous – we all understand that our emails and calls are monitored, it’s just part of our lives. I just think it’s a cultural thing out there.”But that thinking is not shared by all of UAE’s half a million BlackBerry users.A teacher who has lived in the region for 10 years and wished to remain anonymous said she would blame RIM “for caving into demands that compromise people’s privacy” if the manufacturer facilitated greater access to their emails.”There is no alternative but switching to another device,” she said. “If [RIM] allowed the government to intercept messages, I wouldn’t be sending you this email.”BlackBerryData and computer securityMobile phonesIndiaJosh Hallidayguardian.co.uk © Guardian News & Media Limited 2010 Terms & Conditions

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(Source The Guardian)

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