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RIM troubles: CellOne, Digicel reassure Island’s 30,000 BlackBerry customers

Working on contingency plans? RIM's troubles raise questions about the fate of BlackBerry devices, used by some 30,000 in Bermuda

BlackBerry corporate customers globally are working on contingency plans so they won’t be affected by a possible break-up of parent company Research In Motion, a potential loss of service, or other setbacks.In Bermuda, cellphone providers Digicel and CellOne yesterday assured that there customers will be taken care of should the worst happen.There are an estimated 30,000 BlackBerry customers in Bermuda.Digicel, however, said they had no cause for concern at this time.“There have been no concerns communicated to Digicel thus far from our corporate clients. The high level of security and data compression that RIM provides still makes the BlackBerry the device of choice for the majority of our Corporate and Government customers. RIM has been a reliable partner for many years and we enjoy a close relationship with them. We have not received any information that will cause us concern about the availability or continuity of BlackBerry services.”“RIM has been a reliable partner for many years and we enjoy a close relationship with them,” said Digicel Sales Director Shane McDonnell. “We have not received any news that will cause us concern about the availability or continuity of BlackBerry services. Digicel has no reason to be concerned about the possibility of loss of service at this time.”But a CellOne spokeswoman told us: “There have been a minimal number of new inquiries from Corporate clients regarding other device options. While the idea of RIM going out of business is a possibility, a number of interested parties exist that would likely ensure an orderly transition of the client base.”She added: “A change like this would be monumental but we at CellOne are prepared with our knowledgeable corporate team and the most extensive handset line-up in Bermuda. We are well equipped to offer business clients other platforms such as iPhone & Android devices should they request them."Bloomberg reported this week that a number of RIM customers were preparing for the worst.This as RIM announced yesterday before its AGM in Ontario that it aims to release the first of its new BlackBerry 10 smartphones globally in January, betting that the device will help it regain market share lost to rivals led by Apple and Google.RIM’s share of the global smartphone industry fell by more than half to 6.4 percent in the first quarter, according to IDC, while Android jumped to 59 percent, and Apple accounted for 23 percent.RIM’s stock has slumped more than 70 percent in the past year, and tumbled 19 percent on June 29 after the company posted a quarterly loss and delayed the BlackBerry 10 operating system, increasing the pressure on RIM to find a buyer or sell assets.While RIM has built infrastructure to ensure continued service, some customers are devising backup plans.“In the past three months there’s been a lot of concern that the BlackBerry platform won’t be around in the future,” Maribel Lopez, founder of Lopez Research, a wireless- industry consultant based in San Francisco, told Bloomberg. “It’s not unheard of for a large phone manufacturer to go out of business.”With millions of employees connecting to the office through mobile e-mail, companies have been eager to establish a fallback or replacement plan, said Avi Greengart, a technology research director at Current Analysis.Thames River Capital supplies about 140 of its 170 employees with smartphones, most of them BlackBerrys, said Robert Cockerill, head of infrastructure at the London-based money manager.With the delay of BlackBerry 10 and a service contract with RIM expiring this year, Cockerill said he expects much of his staff to switch to Apple’s iPhone or devices based on Google’s Android platform, though the chance of BlackBerry service getting shut down is slim.Last month, RIM said it would cut 5,000 jobs and posted a quarterly loss that was five times bigger than projected. Sales last quarter plunged 43 percent as RIM’s share of the global smartphone industry fell by more than half to 6.4 percent in the first three months of the year, according to research firm IDC.“RIM’s situation is dire, but even in a worst-case scenario, RIM’s servers aren’t likely to get turned off anytime soon,” said Current Analysis’s Greengart. “Still, IT managers are looking more seriously at alternatives to BlackBerry. There’s a whole industry ready to provide security and management around Apple and Android,” he said.