RIM gets 2-month reprieve as it promises to consider setting up server in India

BlackBerry-maker Research in Motion (RIM) has been given a two-month reprieve by the Indian government to continue services in the country.

The Indian government provided Waterloo, Ontario-based RIM with more time after the company bowed to pressures and agreed to consider setting up a server in India to help security agencies monitor its encrypted data.

Earlier the government had set August 31 deadline for RIM to provide access to its messenger and enterprise solutions because these services routed encrypted data through company-owned servers that don’t allow security agencies to track such data.

Speaking on the topic, a government official said, "They will be given some time to comply. We will be pushing for servers in India.”

The government believes that security agencies’ inability to track such data is encouraging terrorists to use such services to plan their attacks.

Apart from India, many other countries such as Saudi Arabia, Indonesia and the UAE have warned to ban BlackBerry messaging services over concerns that they could risk national security. Indonesia, for example, has asked RIM to install a server in the country as it worries that e-mails could be intercepted as they navigate through RIM's overseas servers.

RIM is making efforts to expand in emerging markets of the world as it is facing cut-throat competition in North America from rivals such as Apple and Google.

There are more than one million subscribers of BlackBerry services in India.