Abu Dhabi: Retailers in the UAE have witnessed a surge in sales of BlackBerry alternatives as a ban on the device looms next week.
Shoppers have been purchasing Apple's iPhone 4 and Samsung's Galaxy S in anticipation of the BlackBerry ban's which is set to be implemented on Monday, October 11.
The Telecommunications Regulatory Authority (TRA) will impose a ban on BlackBerry's e-mail, web-surfing and instant messenger functions unless UAE authorities reach an agreement with the device's Canadian manufacturer Research In Motion (RIM).
An estimated 500,000 people, or 10 per cent of the population, are BlackBerry users in the UAE, with etisalat accounting for the bulk of subscribers. Du has about 100,000 subscribers.
The move has prompted thousands of UAE residents to consider alternative smartphones with similar features.
Ashish Panjabi, Chief Operating Officer of Jacky's Electronics, said BlackBerry sales had been affected since the TRA announced a ban on certain BlackBerry data services. "We have been discouraged from activating any new subscriptions for BlackBerry services.
"Both telcos, etisalat and du, don't want to ask customers to enter into a monthly agreement knowing they may not be able to honour it in the long-term and we support them on this.
"Most of the BlackBerry handsets we are selling at the moment are serving the replacement market such as people who are seeking to buy a new phone because their old one is damaged.
Other successes
"Many other smartphones have seen a jump in sales [since the ban was announced] but this is not only because of the ban. For example, Apple's iPhone 4 and Samsung's Galaxy S phone were both launched recently; the Galaxy S has been the first major success story on the Android platform in the UAE. "During the last two months, many people have retained their BlackBerry device but have also opted for a second smartphone whether it be Apple, Nokia, HTC, Samsung or Motorola.
"This impetus to get a second smartphone may not have happened as quickly as it did if the threat of a ban had not come into place. We are optimistic that BlackBerry services will continue but we support the decision taken by the local authorities," Panjabi said.
A ban on certain BlackBerry services in India was delayed for at least two months after RIM offered to support the country's need for "lawful access" to encrypted data.
No influence
Many residents remain hopeful that a similar agreement can be reached in the UAE, too, before next week's deadline.
Haresh Thawani, Assistant Vice-President and Head of Telecoms at Jumbo Electronics, said: "We are neither encouraging nor discouraging customers into buying BlackBerry handsets. BlackBerry users are not the kind [of people] who can be influenced; they are educated and have made up their mind on a BlackBerry before they even walk into a Jumbo Electronics store.
"A lot of expatriates and tourists continue to buy BlackBerry handsets; they can always use the unlocked version elsewhere.
"The sales have definitely dropped in anticipation [of the ban] and prices have also fallen. However, that is because of pre-Gitex pricing and not necessarily because of anticipation of the TRA verdict." "It's almost going to look like a nightmare living without [a] BlackBerry," said Abdul Rahman Al Harthi, CEO of MENA Financial Group, an investment bank.
"We're going to wait until the last second — not the last day — and we are full of hope for a resolution."
RIM has come under pressure by authorities in the UAE, Saudi Arabia, India and other countries to provide greater access to the encrypted information sent by BlackBerry devices.
The TRA said it would block the services due to national security concerns and that the ban would apply to both domestic customers and international roaming users.
While the lack of a resolution wouldn't have a major financial impact on RIM-given the UAE accounts for a small portion of the overall global sales — a suspension of services would be "a relatively large disaster" for businesses in the UAE, said Shardul Shrimani, a telecoms analyst with IHS Global Insight in London.
— with inputs from Zawya Dow Jones
