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August 8, 2010

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Saudis reach deal on BlackBerry service

SAUDI Arabia and the makers of the BlackBerry smartphone have reached a deal on accessing users' data that will avert a ban on the phone's messenger service, a Saudi official said yesterday.

The agreement, involving placing a BlackBerry server inside Saudi Arabia, would allow the government to monitor users' messages and allay official fears the service could be used for criminal purposes, the official said.

The deal could have wide-ranging implications for several other countries, including India and the United Arab Emirates, which have expressed similar concerns over how BlackBerry maker, Research in Motion Ltd, handles data.

The Saudi regulatory official, who spoke on condition of anonymity because he was not authorized to discuss the details of the deal with the media, said tests were now under way to determine how to install a BlackBerry server inside the country.

Canadian International Trade Minister Peter Van Loan confirmed on Friday that Canadian officials were in talks with the Canada-based maker and Saudi officials in a bid to avert the ban.

The kingdom is one of a number of countries expressing concern that the device is a security threat because encrypted information sent on the phones is routed through overseas computers -- making it impossible for local governments to monitor.

The UAE has announced it will ban BlackBerry e-mail, messaging and web browsing starting in October, and Indonesia and India are also demanding greater control over the data.

Analysts say RIM's expansion into fast-growing emerging markets is threatening to set off a wave of regulatory challenges, as its commitment to keep corporate e-mails secure rubs up against the desires of local law enforcement.

Saudi Arabia's telecommunications regulator announced the imminent ban last Tuesday, saying the BlackBerry service "in its present state does not meet regulatory requirements," according to the state news agency SPA.

BlackBerry phones are known to be popular both among businesspeople and youth in the kingdom, where local media estimate there are some 750,000 BlackBerry users, who see the phones' relatively secure communication features as a way to avoid attention from the authorities.

 

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