RIM gives in, BlackBerry server to be located in India

Government sources said that the situation will be reviewed in 60 days.

NEW DELHI: Research in Motion, maker of BlackBerry on Monday gave into government's demand and agreed to locate server in India. RIM will provide full data access to the authorities. Government sources said that the situation will be reviewed in 60 days.

The government, worried that militants could use BlackBerry's heavily encrypted services to plan attacks, had imposed a deadline of August 31 asking RIM to either provide a solution for monitoring encrypted data or shut shop.

There are over 900 corporate houses and companies and about a million subscribers who use BlackBerry services in India.

For RIM, whose shares closed at a 52-week low on Friday of 45.99 dollars in New York, striking a deal with India was crucial and would help ensure the company is not shut out of the world's fastest-growing cellular market.

RIM had earlier said that it had no "master key" to unlock encryption codes of clients which are set at the user level and argued the issue is an industry-wide concern.


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