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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Would Like an Option
3/6/2012 6:18:05 PM
We have been hanging in there with RIM because we have yet to find an alternative that addresses the data usage while roaming. BB offers compression the others all seem to think roaming is free.
The couple of iPhones we have tried have cost 2 to 3 times the that of the BB's while roaming. This is pretty significant. It is one thing to replace the fleet but to be paying for it 3 times over year after year doesn't cut it.
Talking to others I am hearing stories of people returning from trips with $10,000 in mobile data charges, I would be freaking out at $1,000.
The other issue is management of the BB's for us is free as we a using BES Express (we scrape in with numbers). If we have to go out and buy 3rd party software and licenses to run an fleet of somthing else that is a significant additional cost we don't have at this time.
I welcome any feedback or suggestions.
RE: Would Like an Option
3/6/2012 6:54:43 PM
"Who cares how BB is convenient for you or your business when their stock is 80% down?" (C) retrotroll
RE: Would Like an Option
3/6/2012 8:54:44 PM
It’s not about being convenient for our business. There is potential for a significant financial impact for everyone in regard to roaming data costs, but it appears little discussed despite big potential impact. I am sure there are others interested in covering all bases and making careful decisions.
I welcome an alternative as I am also not happy about the direction RIM is going in, but I am not about to change without a pretty solid business case. I don't know many businesses that can afford to squander money in the current climate.
You need to come up with a better argument than who cares about your business. If you haven't got any productive suggestions why bother commenting. I am not interested in anyone’s fanboy leanings. Personal preference is not relevant to building a sound case for a particular platform and what I use at home will likely differ from the office. Suggesting change regardless of impact because you don't like RIM doesn't cut it.
I can just see it, I will go to the board and say we're recommending changing platforms at great cost because we don't like how RIM's stock prices are looking. I would get laughed out of the room. Not that I would make any significant new investment with RIM at the moment either.
RE: Would Like an Option
3/7/2012 11:48:29 AM
""Who cares how BB is convenient for you or your business when their stock is 80% down?" (C) retrotroll"
Ugh... I wish you would just get over it. I have said this before... I am
rooting against RIM. I really hope they dont go away. I dont want to see and Apple/Google duopoly. I love smartphones and I want the market to broaden and become cheaper. I want RIMM's next OS, and WebOS, Winmobile and any others to stay relevant. It keeps the competition innovating and it keeps prices low so we all benefit. My only issue with RIM, is that they were on top, and had plenty money and they threw it all away with bad decisions and poor execution. Me trying to explain to you how screwed RIM is doesn't make me a troll. I have also said before that QNX looks good. My only comment is that it may be too late. RIMM will likely have to sell off before QNX gets a foothold. It will be competing with IOS6 and ANdroid 5 by the time it's released.
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