NEW ORLEANS-Although much of the news from last week’s CTIA show focused on the typical consumer, Research In Motion Ltd. managed to remind the industry of the importance of the enterprise customer with its new BlackBerry Connect licensing program.
The new licensing program expands on a deal RIM announced late last year with Nokia Corp. Under that previous deal, Nokia said it would include RIM’s wireless corporate e-mail technology for use in its devices, starting with its 6800-series messaging device. The deal was hailed as notable for RIM, marking the company’s attempt to expand its business beyond hardware and software sales and into device licensing agreements.
Last week, RIM announced the addition of Microsoft Corp. and Symbian licensees to its lineup of potential BlackBerry Connect customers, as well as the formalization of its licensing program. Specifically, manufacturers that build devices using Microsoft or Symbian software will have the opportunity to include RIM’s e-mail technology in their devices. High Tech Corp., which uses Microsoft software in its line of wireless devices, said it licensed RIM’s technology for use in future devices.
“I think there’s a pretty compelling agreement for all of those involved,” said Mark Guibert, vice president of RIM’s brand management.
Guibert explained that RIM will not derive any revenues from Microsoft or Symbian specifically, but that now those manufacturers that use Microsoft or Symbian software will have the opportunity to include BlackBerry technology in their devices. Guibert said Microsoft and Symbian licensees will negotiate the specifics of possible licensing deals directly with RIM. As for RIM, the ove means the company’s business customers will be able to get their BlackBerry-based wireless corporate e-mail on more than just RIM’s BlackBerry devices. To date, RIM has about 10,000 corporations using its BlackBerry server technology.
“To deepen the relationships with those customers, you’ve got to give them a choice of devices,” Guibert said.
UBS Warburg said RIM’s move was a positive for the company, and that such licensing agreements are the surest route for the company to generate substantial and growing profits. However, UBS Warburg said RIM still faces challenges.
“We think the two biggest risks to RIM are that the BlackBerry market may remain a niche and that wireless carriers may try to erode the subscriber fee they pay RIM, which is roughly $8-10 per month,” the firm said in a research note.
The firm also said its recently conducted a survey of business customers showing some concern over wireless data. UBS Warburg found 59 percent of respondents expected less than a 10 percent increase in active wireless data users through next year, and that 74 percent of respondents said network pricing was a major factor limiting wireless data adoption.
In other RIM news, the company demonstrated a BlackBerry device for Verizon Wireless. The BlackBerry 6750 is expected to be available from Verizon Wireless in the second quarter of this year. RIM also introduced the BlackBerry 6210 for North America.
