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Edition: U.S. Article Comments (2) Save Email Print Reprints Most Popular Most Shared Pro-Cantonese protesters scuffle with China police 12:19am EDT Calcium supplements may raise risk of heart attack 29 Jul 2010 China slows to cruising speed; India perks up 1:52am EDT Chelsea Clinton marries in "royal wedding" | Video 01 Aug 2010 BlackBerry users in UAE and Saudi may have services cut 12:11am EDT Singer Alicia Keys weds Swizz Beatz 01 Aug 2010 U.S. most armed country with 90 guns per 100 people 28 Aug 2007 Pass child nutrition bill: Michelle Obama 01 Aug 2010 GLOBAL ECONOMY-China slows to cruising speed; India perks up 1:36am EDT Obama warns U.S. not to "demagogue" immigration 31 Jul 2010 Calcium supplements may raise risk of heart attack 29 Jul 2010 Pro-Cantonese protesters scuffle with China police 12:19am EDT China slows to cruising speed; India perks up 1:52am EDT BlackBerry users in UAE and Saudi may have services cut 12:11am EDT U.S. most armed country with 90 guns per 100 people 28 Aug 2007 Brewer claims world's strongest beer 29 Jul 2010 Pass child nutrition bill: Michelle Obama 01 Aug 2010 Kings of Leon abandon U.S. concert due to pigeon poop 26 Jul 2010 Obama warns U.S. not to "demagogue" immigration 31 Jul 2010 China's Geely set to close $1.8 billion Volvo buy 1:14am EDT BlackBerry users in UAE and Saudi may have services cut Digg This Tweet This Share on LinkedIn Share on Facebook Related News BlackBerry users in UAE see speech, business concerns Sun, Aug 1 2010 Related Topics Technology » iPad » Media » Saudi Arabia » A person poses while using a Blackberry Bold 2 smartphone made by Research in Motion (RIM), July 13, 2010. Credit: Reuters/Mark Blinch By Tamara Walid and Souhail Karam DUBAI/RIYADH | Mon Aug 2, 2010 12:11am EDT DUBAI/RIYADH (Reuters) - More than a million BlackBerry users may have key services in Saudi Arabia and the UAE cut off after authorities stepped up demands on smartphone maker Research In Motion for access to encrypted messages sent over the device. BlackBerry's Messenger application has spread rapidly in the Gulf Arab region but because the data is encrypted and sent to offshore servers, it cannot be tracked locally. "Certain BlackBerry services allow users to act without any legal accountability, causing judicial, social and national security concerns," the United Arab Emirates' Telecommunications Regulatory Authority (TRA) said in a statement. The UAE said it would suspend BlackBerry Messenger, email and Web browser services from October 11 until a fix was found, while industry sources said Saudi Arabia had ordered local telecom companies to freeze Messenger this month. Sunday's moves cap wrangling with regulators over the issue, which first surfaced in 2007. India raised similar security concerns last week, and Bahrain in April warned against using BlackBerry Messenger to distribute local news. As far back as 2007, France cautioned officials about using the services. Indian security officials were concerned that BlackBerry's encrypted data could be used to coordinate acts against the state. They have clamped down on mobile phone operators in the wake of 2008 attacks that killed 166 people in Mumbai. The UAE, home to Gulf financial hub Dubai, said it would halt BlackBerry services until an "acceptable solution" was developed and applied. Users of the device said that could mean disruptions for companies and individuals who rely on the services, including almost 700,000 in Saudi Arabia and some 500,000 in the UAE. "It's a final decision but we are continuing discussions with them," Mohammed Al Ghanem, director general of the UAE's TRA, told Reuters. "Censorship has got nothing to do with this," he said, calling it instead a suspension due to RIM's lack of compliance with UAE regulations. Authorities noted there is no such problem with services on smartphones from Nokia or Apple's iPhone. "This is an issue for RIM since all email traffic goes through its Network Operating Centers," said James Cordwell, an analyst at Atlantic Equities. "Nokia and Apple do not route traffic in this way." RIM officials were not immediately available to comment. The Canadian company has more than 41 million BlackBerry subscribers, meaning the Gulf bans could affect fewer than 3 percent of its users. "The UAE market in and of itself is not significant to RIM. A bigger concern would be if it runs into similar issues in a large market such as China, which has similar security concerns, as Google is well aware of," Cordwell said. USER UPROAR In Saudi Arabia, BlackBerry handsets have become the must-have gizmo for Saudi youth, enabling them to connect with members of the opposite sex in a deeply conservative society. "About 80 percent of Saudi-based BlackBerry users are individual users and 20 percent are enterprises, while these ratios are basically reversed in developing nations," said one industry source. "This problem would not have emerged if the bulk of BlackBerry users were enterprises." The governor of Saudi Arabia's telecom regulator declined to comment. An Interior Ministry spokesman could not immediately be reached to comment. In the UAE, which is slowly emerging from an economic slowdown brought about by the global financial crisis and Dubai's property crash, some worried the move was aimed at curbing free speech. "If you want to eavesdrop on your people, then you ban whatever they're using," said Bruce Schneier, chief security technology officer at BT. "The basic problem is there's encryption between the BlackBerries and the servers. We find this issue all around about encryption." Wrangling over the issue included an incident last year in which a state-controlled local service provider, Emirates Telecommunications (Etisalat), introduced what it called a software upgrade. RIM said it was an unauthorized "telecommunications surveillance application. "I think there will be such an uproar, it probably won't happen and a solution will be found," Irfan Ellam, Al Mal Capital telecoms analyst said, referring to the mooted BlackBerry services ban. "BlackBerry is seen as essential by many companies, so if you want to attract business to your country, it doesn't make much sense to ban these BlackBerry services," said Ellam. He said RIM had been asked to set up a proxy server in India to allow the government there to monitor traffic from a security perspective and the same approach might resolve the issue in the UAE and elsewhere. "The UAE is asking them to have a server here and they are offering solutions other than that," a UAE source familiar with the matter told Reuters. "BlackBerry appears to be compliant in similar regulatory environments of other countries, which makes noncompliance in the UAE both disappointing and of great concern," UAE's regulator said. RIM shares rose last week on speculation that it might unveil a new touchscreen BlackBerry this week to compete more effectively with the iPhone and models. (Additional reporting by Matt Smith, Mahmoud Habboush in Dubai; Frederik Richter in Manama; Alastair Sharp in Cairo; Reed Stevenson in Amsterdam; Frank McGurty in Toronto; Writing by Amran Abocar; Editing by Jason Neely and Maureen Bavdek) Technology iPad Media Saudi Arabia Comments See All Comments (2) | Post Comment Aug 02, 2010 1:12am EDT why anyone want to read my sms ? i may send personal sms to my wife and why the president of a country want to read it ? whether if its indian officials or france or usa why the hell they want to read my personal text ? to stop the violence ? sorry my friends you people are trying to dominate and rule others by the name of law … you are in the wrong side greedy for power and money … these days governments and officials are total nuisance for the general public rajeevtco Report As Abusive Aug 02, 2010 2:09am EDT One question is bothering me since yesterday. Blackberry service is operation in UAE since more then three years and now TRA realised that they need access to the data. Basically in this country never buy anything unusual they change their rule quiet often. Whether its mobile, jetski, immigration residency law or property laws rosadxb Report As Abusive See All Comments (2) Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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