Mobile devices Toolkit

BlackBerry firm keeps arms together

John Lui CNETAsia

Published: 03 Oct 2003 11:10 BST

Research in Motion, maker of the BlackBerry handhelds and mobile-data service for corporate executives, has no plans to get out of the hardware business or spin off a software or services division, said a senior executive.

Don Morrison, chief operating officer of the Canada-based company was replying to questions from CNETAsia after he announced that the firm was stepping up its licensing program.

He said that hardware was "too exciting a business" to spin off. RIM's BlackBerry handhelds had unique advantages, among them "exceptional" GPRS radio chips and long battery life, he said.

"We'll play in that arena. We spend a lot of time looking at design and the challenge for us is to go downmarket and compete with some of the other players," he said, referring to RIM's aim of eventually moving into the consumer and lifestyle market.

He announced that RIM's BlackBerry Connect licensing program had roped in handset makers Motorola and Sony Ericsson. Earlier this year, it was announced that PalmSource, Nokia, Microsoft and handset operating system company Symbian were among the first licensees.

The licence allows companies to build hardware and software that supports RIM's BlackBerry mobile-data service, which includes email, text messaging and instant messaging.

In Asia, mobile operators will launch handsets with BlackBerry service at the end of this year, he announced.

Licensees buy into RIM's "BlackBerry plumbing that provides the secure push experience", in Morrison's words, or the solution that allows backend email, messaging or other servers to exchange data with handhelds over cellular networks.

Morrison also said that despite the licensing push, there were no plans to carve out parts of the company, such as the services or software divisions.

"Our technology is pretty integrated. There is a high degree of interaction between all portions of the technology," said Morrison.

Handheld maker Palm's software-only subsidiary, PalmSource, is being spun off this year, to focus on developing and licensing the Palm OS operating system, while the company to be known as PalmOne will sell only hardware.

In Asia, BlackBerry service has been launched in Singapore, the Philippines, Australia and Hong Kong for some months.

The RIM customer base grew by 20 percent globally in the last quarter, but the Asia growth was 35 percent, he said.

In Singapore, mobile operator StarHub launched its BlackBerry service early this year and so far 50 companies have signed up, according to a spokesman.

Morrison said RIM was in a "gestation period" before launching into Asia's largest markets, India and China.

RIM acquired a few firms with the Chinese font technology and was developing its first Chinese-language products, and saw huge opportunity in China's relatively undeveloped cabled telcoms infrastructure, he said.

"China views wireless in the same way that the US would view wireline, as a primary means of service. We are very interested in the way wireless can provide Internet and email in places where they can't get those services with wireline," he said.