BlackBerry Down

(Photo credit: Wikipedia)

As anyone who has heard me chatting on the radio (*ahem* Every Thursday from 12.45 on 103.8FM's 'Lunchtime Live') will attest, I have long been fascinated by the precipitous dynamics of the smartphone market. In the past five years, we have seen shifts in technology and corporate fortunes on an unprecedented scale - no other industry in history has impelled such meteoric change at such speed and with such scope.

Five years ago, Nokia was the world's biggest mobile maker and a dominant force. They invented the smartphone. They had over 49% of the global smartphone market, represented 4% of Finland's GDP and boasted a market capitalisation of over 110 billion Euro. Something like 25,000 lost jobs later, Nokia's stock was rated junk, its market share stood  at something like 3% and Microsoft snapped it up for a tad over 5 billion Euro. Remarkably, the man who presided over what must stand as one of the biggest, fastest falls in corporate history, Stephen Elop, looks set to make $25 million from that sale. He came from Microsoft, spent three years destroying Nokia and now he's going back to a $25 million bonus and a stab at Ballmer's job. No wonder people call him the 'Trojan Horse'.

Over the same period, 'troubled' BlackBerry has also managed to transition from global dominance to failure - although its decline and fall has been more recent, its position protected by its strength in the conservative corporate market. It hasn't finished falling by any means, either. BlackBerry's market capitalisation has plummeted from a high of over $70 billion to under $5 billion, while its user base has actually increased, from 8 million-odd in 2007 to almost 80 million in 2013. That hasn't been enough to stem a whopping billion dollar Q2 loss - or the haemorrhage of 4,500 jobs - 40% of the company's global workforce. This is clearly a company in terrible trouble.

It's the speed of these falls that is so stunning. And the speed of the rises, too. Of course, when Steve Jobs took to the stage back in 2007 in his polo-neck and announced the future of the mobile, many in the industry had a good old laugh. Steve Ballmer, brilliantly, led the giggling. You can still enjoy the Great Visionary's laughter today thanks to YouTube. Nokia and BlackBerry weren't far behind in the hooning. But it wasn't actually Jobs banging the nails into coffins - that took Google and Android.

Google mimicked the rise of the PC by providing an 'open top' standard for multiple manufacturers with Android. Once again, it's Mac vs PC, only Microsoft and IBM are no longer players. IBM had the sense to get out, because it could. Microsoft didn't even see it coming - not as remarkable as it may seem: those with long memories will recall the company's 'visionary' leadership missed the Internet, albeit performing a remarkable pirouette on a sixpence to recover the existentially threatening situation its arrogance and lack of awareness created. This time around, the dynamics are different and Microsoft can't depend on market dominance to bludgeon its way out of trouble. And it is in an awful lot of trouble.

But Microsoft's headlines are yet to come. Today belongs to BlackBerry, the company that's had to write off almost a billion dollars against its unsold inventory of unwanted smartphones, having missed its sales targets by over 50%. Now the company itself is for sale and it's a cheaper buy than Nokia. The question is, who wants 80 million users who are, undoubtedly almost without exception, wondering whether they'll go for the iPhone or a Samsung.

Fascinatingly, BlackBerry was to have rolled out BB Messenger apps for Android and iPhone this weekend just past, but they appear to have totally blown the rollout and have withdrawn the apps after getting hit by over a million downloads, despite only short availability on small regional platforms. Screwing this one up was a real Barbarians at the Gate 'light the smokeless cigarette with a match' moment for BlackBerry.

By the way, following that Mac vs PC history repeats itself analogy, I'd guess that makes Samsung Compaq which famously led the charge against IBM by having the sheer balls to release an 80386 machine before Big Blue and rip the PC market rug from under IBM's feet...

UAE BlackBerry 10s Need A Data Plan

BlackBerry Employees Count Down to BlackBerry 10 (Photo credit: Official BlackBerry Images)

There has been quite a lot of confusion globally about the new BlackBerry 10 smartphone and how you access BlackBerry services. In the good old days, your BB worked seamlessly and gave you access to roaming data and messaging - a key reason for its wild popularity in the Gulf. The new BB Z10 will NOT do that. You're going to need to join the riff-raff and subscribe to a data plan. If you try and use that puppy when you're roaming, heaven alone knows what the consequences will be, but standard roaming data rates with both Etisalat and Du are a whopping Dhs 1 per 30 kilobytes of data.

To put that in perspective - a Gigabyte is a thousand Megabytes and a Megabyte is a thousand Kilobytes. So 1 Gig of data at that rate would be around Dhs 33,000. Bargain, huh?

A smartphone will happily gorge its way through thirty kilobytes of data in about the time it takes a fly to hit a windscreen (What's the last thing to go through a fly's mind when it hits the windscreen? Its bum). I've got a 1 GB data plan and manage to keep a lid on it, but I'm by no means a heavy user. And I frequently find myself bobbing up towards the limit by the end of the month. Smartphones are constantly online, downloading this, checking that, updating the other. When you hit YouTube with a vengeance or start using them as a tethered wireless hotspot, the old byteometer starts whizzing around. It's why having a mobile that defaults automatically to WiFi is a godsend - particularly when all your apps decide they need to be updated at once, which happens every other day as far as I can see.

So to be clear, if you've bought the BB10, you're not covered by BIS any more - you need to get a data plan.

Luckily, both of the UAE's operators have BB10 ready plans, although Etisalat seems more ready than its rival - it offers four BB packages ranging from Dhs 49 to Dhs 299. The Dhs 49 package doesn't work with the Z10, so you'll need to start with the 'BlackBerry Complete' plan at Dhs 79. If you want roaming, the most expensive plan, the Dhs 299 'BlackBerry global' will give you 20 MB of roaming data. With roaming data speeds on offer of 2 Mbps, you're looking at using that abundant allowance of data in a little over a minute's access.

Du's plans seem a great deal more sketchy - at least the way they're presented online makes it look that way. And Du's roaming data is via its roaming data daily bundle - a one-time charge of Dhs50 which is valid for 24 hours and buys between 3 and 8 MB of data, depending where you are. Which is even less than Etisalat and a pretty useless amount of data.

At least Etisalat has started sending warning messages out when you hit your data plan limit, but the chances are we can look forward to puzzled UAE BlackBerry users wondering why their lovely new BB Z10 smartphone is suddenly gobbling credits like a PacMan on crack. There's an argument the operators should be louder and clearer on the new arrangement, communicating it effectively to consumers before they make the decision to buy the new handset.

But that would be far too sensible, wouldn't it?

(This post is thanks to Gerald Donovan, who originally brought this issue to light)

The UAE BlackBerry Ban: Barmy

Image via Wikipedia

Why does all the fun happen when I'm away? Woke up today to the news that the UAE is to block BlackBerry Messenger, BlackBerry E-mail and BlackBerry web-browsing following a ruling by telecom regulator the TRA.

Gulf News online reports the story, which WAM broke today as far as I can see from over here. The National's story is here. Etisalat has made a statement which includes the immortal words, "BlackBerry data is immediately exported off-shore, where it is managed by a foreign, commercial organisation."

Oh, the LOLs, from a country where all requests to browse the web are immediately referenced to, errr, foreign, commercial organisations. Unless something's changed since the McAfee acquisition, US security company Secure Computing used to parse all searches to make sure that we weren't being exposed to all the naughtiness and stuff that's out there. We weren't so shy about 'foreign commercial organisations' then, were we folks?

BlackBerry customers were, infamously, not subject to the arbitrary restrictions of the block list. Many will remember the furore that erupted, extensively discussed on this very blog, which appeared to be a muckle-headed attempt on the part of the Telco That Likes To Say Ugh, Etisalat, to cludge security software intended for other purposes into an attempt to introduce surveillance and monitoring capabilities to the otherwise hard to intercept BB.


It's interesting for telecom regulation watchers that the customer is to be harmed extensively as a result of this move by a regulator, a class of organisation that is everywhere in the world tasked with holding the customers interests as one of its primary goals. The Telcos are being forced to breach their compact with their users (The vast majority of people bought BlackBerrys precisely with this very functionality as their primary reason for buying in) and tens of thousands of devices have been rendered basically unfit for purpose overnight.

I look forward to this move being 'clarified'. As it stands, it's yet another attempt to bomb ourselves back into the digital stone age. The madness of it all is that nothing has changed about the BlackBerry or the way in which the device works - and nothing has changed (correct me, please, if I'm wrong) in the 'moral and cultural' environment, or indeed the regulatory environment, since the BB was first introduced to the UAE - it has always worked using the company's own servers which underpinned the very services that CrackBerry users find so very appealing. If you can't live with it now - you shouldn't have sold it to us back then.

Will customers be offered refunds for the now barely functional hunks of black and chrome plastic they hold in their hands? Or will Etisalat and Du be offering free plastic covers that say 'I am browsing happily. Carry on as normal.'???

PS: In a move that appears to highlight that this move is being prompted by security concerns more than anything else, WAM has published an odd document that purports to 'compare the existing telecom regulations of the US, UK and UAE' but which is actually something of a 'dossier' that appears intended to justify the idea that a regulator can just turn around and delete a service being accessed by tens of thousands of consumers. It's a long read, but it's here.

Right. I'm going back on holiday...