Research In Motion Ltd (BBRY) Facing Possible Sanctions In Indonesia

Research In Motion Ltd (BBRY) Facing Possible Sanctions In Indonesia
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Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) will probably face sanctions by the Indonesian Government following the fresh outage due to which millions of citizens could access only limited service of Blackberry.

Research In Motion Ltd (BBRY) Facing Possible Sanctions In Indonesia

Gatot Dewa Broto, Communication and Information Ministry spokesman, said that the sanctions will be taken after the report from Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) about the disturbance, and also advice of telecommunication regulatory board will be taken by the government in order to find out any probable violation of the regulation due to outage, says a report from Bloomberg.

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 Earlier Outage

 “We don’t want to be seen as allowing this to happen time and time again,” Gatot said while noting that the latest outage is the fourth one since 2012.

 This is not the first time when Indonesia will impose a sanction on Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB). Prior to this in September 2009, the government removed two months restrictions on issuing a license for newer Blackberry versions after the company opened a service center in Jakarta.  Before September 2009, their license was frozen by communication Ministry in June 2009 for the sale of new Blackberry models because local branch office with after sale service was not opened.

 Services affected

Due to the latest technical issues the Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) messenger service could not be accessed by the citizens. The outage may come as the blow to the efforts of Blackberry to increase its share in the fourth most populous nation.

 At present, the subscriber base of Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) is 6.3 million in Indonesia, an increase from 6 million in 2012, and 5 million in 2011. The services affected by the outage were Web browsing, social networking and BlackBerry Messenger according to Matt Stewart, a spokesman for Blackberry.

 BBRY holds a good share in developing markets

Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) has been performing quite stable in the Indonesia markets. Low priced Blackberry devices have performed well in the emerging markets. However, the popularity of Blackberry got affected by the low cost Android devices, but it still holds commendable share in the developing economies. However, the Waterloo, Ontario based company will be at risk of facing the share drops if such outage turns frequent.

Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) is focusing on taking back the market share from Apple Inc. (NASDAQ:AAPL) and Samsung electronics co’s Galaxy S4 by launching the OS 10 devices.

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