-
bridgethfoxwort posted this
UPDATE 1-Compensation clouds gather over BlackBerry outage
* Vodafone considering options* Providers will try to pass costs on to RIM-analysts* RIM, some users say service recoveringBy Tarmo Virki and Kate HoltonOct 13 (Reuters) - BlackBerry maker Research In Motion
faced the prospect of a compensation bill from network
providers on Thursday as the world’s dominant provider of mobile
email struggled for a fourth day with service glitches.RIM said services were starting to improve in all affected
regions, reducing disruption for the millions of users hit by
delays and outages.But many in the telecoms industry believe significant damage
has been done to a business that already has its share of
trouble. They see a risk that this week’s disruption will tip
already restless BlackBerry users into the arms of rivals like
Apple.Meanwhile the company’s service provider partners were
looking at how compensation might be handled.”We are reviewing our options in terms of compensation,”
said a spokesman for Britain’s Vodafone , adding that “no
decisions have been taken.”Spain’s Telefonica said on its web site it would compensate
customers, in line with Spanish law. Spanish Consumer
Association FACUA estimated that clients will receive 0.23-1.90
euros ($0.31-$2.62) for each 24 hours of service interruption.The Vodafone spokesman would not be drawn on whether such
costs might be passed on to RIM, but analysts said there was
little doubt operators would try.”In the past there have been outages but they’ve been
limited to an hour here and an hour there and the operators have
been tempted to let that go,” said Will Draper, analyst at
Espirito Santo.”They haven’t been happy about it but it’s not the kind of
thing you go to court over. But this is completely different.
This is a three-day outage. This is 10 percent of your working
month, so I’m pretty sure there will be compensation claims and
I’m pretty sure they’ll try and pass it on to RIM, but my
feeling is it will be very difficult to make it stick.”RIM is unique among handset makers in that it compresses and
encrypts data before pushing it to BlackBerry devices via
carrier networks. Apple and other rivals rely on the carrier
networks to handle all routing and delivery of content. However
other providers are breathing down RIM’s neck with smarter
handsets and copycat service provision.Apple has started rolling out new version of its
iOS software which includes BlackBerry-like iMessage service.One analyst said BlackBerry is a victim of its own success in
that the huge increase in usage over recent years has made its
centralised network architecture vulnerable.”This is the first major disruption to the BlackBerry
service since 2009, during which time the number of BlackBerry
users has doubled,” said Nick Dillon, analyst at technology
specialist consultants Ovum in a note …”Despite the benefits
the network brings in real-time delivery of email and data
efficiency, it remains significant risk for the company.”SERVICES RECOVERRIM said there had been a significant improvement for
services with users saying their services had started to work
again, although there were still some delays.”Service levels are also progressing well in the U.S.,
Canada and Latin America and we are seeing increased traffic
throughput on most services, although there are still some
delays and services levels may still vary amongst customers,”
RIM said in an update on its website.Singapore employees of global news and data provider Thomson
Reuters were still having problems on Thursday but colleagues in
London, Beijing, Tokyo, Jakarta and Bangkok said BlackBerry
service was normal.The outages — and RIM’s sluggish communications with its
customers — have fanned rising dissatisfaction with its
co-chief executives, Mike Lazaridis and Jim Balsillie.Critics have called for a shake-up, saying the top managers
have let the company fall too far behind Apple and other rivals
in a rapidly changing market.RIM’s shares have already tumbled more than 50 percent this
year on a series of profit warnings and product missteps - a
sharp reversal of fortune for a company that once dominated the
smartphone market.Even before this week’s disruptions, many companies had
started to balk at paying a premium to be locked into RIM’s
service. Some are now allowing employees to use alternative
smartphones, particularly Apple’s iPhone, for corporate mail,
and the outage could accelerate the trend.