Report: RIM to Slash BlackBerry Service Fees After Second Gov. Agency Leaves
March 6, 2012 11:17 AM
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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