Report: RIM to Slash BlackBerry Service Fees After Second Gov. Agency Leaves
March 6, 2012 11:17 AM
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The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is the second government agency to leave BlackBerry this year
has lost two U.S. government agency which used its services, and will now cut the fees it charges for BlackBerry service in an attempt to prevent anyone else from leaving.
Last month, the National Oceanic and Atmospheric Administration (NOAA) announced that it would let go of its BlackBerry servers by June 2012 in an effort to cut costs. And
we recently reported
that the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is following suit.
RIM has its own network infrastructure where it can encrypt, compress and direct data to BlackBerry devices through its cellular network. This seemed ideal for the workplace, where BlackBerry phones quickly became popular.
However, fees that RIM charges carriers for the BlackBerry service has put a bit of financial strain and headache on those carriers. Also, competition like Apple's iOS and
Google's Android-based smartphones
are beginning to be used in the workplace, and offer more user-friendly features as well as improved security features without the added costs of the BlackBerry service. In other words, BlackBerry devices are not the only suitable professional smartphones on the block anymore.
RIM now says it plans to slash the fees it charges carriers for BlackBerry service at some point this year in an effort to save itself from losing anymore customers. It also plans to introduce its BlackBerry 10 smartphones in late 2012 as well as new software called Mobile Fusion, which allows "core enterprise customers" to manage the company's competitors' devices.
RIM was also hit hard last October when BlackBerry customers around the world
experienced a service blackout
. Customers from the U.S., Canada, South America, Europe, the Middle East, India, and Africa had problems with messaging and browsing for four days, which can be detrimental in a workplace.
RIM is clearly beginning to feel the pressure, as RIM shares fell 4.3 percent to $13.20 on Monday afternoon. Since February 2011, RIM has lost 80 percent of its value because of its unimpressive product launches and bleak earnings as well as reduced U.S. market share.
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So now it somes to drastic measures
3/6/2012 1:01:51 PM
RIM reminds me a dying patient in agony, reaching for another dose of opium to prolong whatever last days it has remained. It won't save them but simply delay the inevitable outcome. Blackberry platform became obsolete as RIM did not realize the game change when first iPhones hit the market and Google was busy putting finishing touches on Android OS. Now they are hopelessly behind, hemorrhaging both customers and finances and losing whatever remains from their market share and brand reputation by the month. Essentially, it's a game over for RIM and they would follow Motorola's path as somebody would simply snatch them for their IP portfolio which is the only remaining sellable asset that RIM has to offer. I would not be surprised if RIM, as we know it, will not exist in 12 months from now.
RE: So now it somes to drastic measures
3/6/2012 4:13:34 PM
I've been telling people that RIM needed to move to Android 2 years ago...
It became obvious that they lost touch with hardware, and moving to a more global platform rather than trying to revive something they let languish for too many years.
At this point, I can still hope that RIM would move to Android and port their tools (which they've been doing) to the other platforms. However, it may be too little too late.
The problem is their ex-CEOs and the current CEO (who is exactly like the old ones) can't seem to move quickly enough... or see the impending end.
It'll take an apple-sized miracle for them to stay afloat. There somes a point in the attrition rate of a company's worth where they'll never have capital to recover and I believe that time has passed.
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