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AT&T, Verizon Push RIM to Reduce Carrier Fees
Given RIM's Former Clout is All but Nonexistent
by Karl Bode Tuesday 10-Jul-2012 tags: wireless · hardware · wireless
With RIM, well, imploding, both Verizon and AT&T have apparently seen their opening to demand that the company reduce carrier fees. The fees, which generate RIM around $4.09-billion in annual revenue, are charged carriers so that consumers can access the RIM infrastructure. But with the company's clout dwindling quickly, RIM no longer has the power to be the only company charging such fees -- and Verizon and AT&T are taking full advantage. “April, May of next year could be a time of reckoning for RIM," one analyst tells The Financial Post. "It's a race between what comes first: BB10, zero cash balance or an acquisition."

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rogerssmoger

@start.ca

Yeah But

Yeah but customers won't see the prices go down so why bother.

RIM can still say no.
bn1221

join:2009-04-29
Cortland, NY
Reviews:
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Re: Yeah But

Yeh I always found if funny how Verizon "forced" a data plan on a BB saying RIM required it but T-Mo let you get a BB and not put a data plan on it. In 2007 we wanted to give away a bunch of old VZ blackberries so kids could have a keyboard to txt with and VZ said no deal you have to have a data plan RIM requires it.

I'd rather see RIM lease out the BES and BIS to Google and Microsoft as IMHO its superior to Active Synch. I know you can pay and get the BES like experience with 3rd party tools but RIM could have capitalized on their network.

jester121
Premium
join:2003-08-09
Lake Zurich, IL

Re: Yeah But

So maybe Verizon's contract with RIM was different from T Mobiles?

RIM's network has been an abortion for the past few years. Just do a search of the news archive here and you'll see several major system-wide outages that took down major customers.

It's been several years since BB was the e-mail king of mobile.
bn1221

join:2009-04-29
Cortland, NY

Re: Yeah But

Since I manage around 100 devices at work..yes I am well aware of RIM's issues.
Sammer

join:2005-12-22
Canonsburg, PA
said by rogerssmoger :

RIM can still say no.

The whole point is that in less than a year RIM may not be in the position to say no. If RIM is going to fail in the future, AT&T and Verizon would probably like to see that happen sooner rather than later.

Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

RIM fees charged carriers a net neutrality violation?

RIM charges users for their devices and their services. Why are they also charging carriers a fee as well? That is the same net neutrality argument used against carriers who want to charge both ends of a content transfer. Will the net neutrality crowd be as outraged at RIM as they are at the carriers? Somehow I doubt it, because hatred of carriers is what drives the net neutrality argument. And RIM is now the poor underdog struggling to survive.
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Kendall, FL
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Re: RIM fees charged carriers a net neutrality violation?

A user doesn't have to use a RIM device, there are many other devices out there. But carriers? Not that many, and nearly all of them are identical in fee structure.

The net neutrality issue comes up when a company tries to place an unfair burden on a consumer with little or no other options. Clearly, RIM is not in a position to corner any market.
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Re: RIM fees charged carriers a net neutrality violation?

said by Rob:

Clearly, RIM is not in a position to corner any market.

RIM also offers separate email servers, SLAs, encryption, easily making a case that they offer something on top of what the carrier provides, and they're not the only smart phone on the market.
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Hooper
Premium
join:2001-10-22
Villanova, PA

New low, even for Karl

Karl,
You are usually the supporter of the underdog and the champion of all things not big company. Here we have a company getting squeezed SOLELY due to the greed of the carriers and you think it is awesome!

What did RIM ever do to you that you hate them so much?

Simba7
I Void Warranties

join:2003-03-24
Billings, MT

Re: New low, even for Karl

said by Hooper:

What did RIM ever do to you that you hate them so much?

Um.. Where should we start?

Camelot One
Premium,MVM
join:2001-11-21
Greenwood, IN
kudos:1
said by Hooper:

Karl,
You are usually the supporter of the underdog and the champion of all things not big company. Here we have a company getting squeezed SOLELY due to the greed of the carriers and you think it is awesome!

They aren't getting squeezed due solely to the greed of the carriers. They are getting squeezed because they have repeatedly, and consistently, screwed up! RIM is like a playbook for how to kill a company. That other companies want to take advantage of their failure is just basic economics.
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Sammer

join:2005-12-22
Canonsburg, PA
said by Hooper:

Here we have a company getting squeezed SOLELY due to the greed of the carriers and you think it is awesome!

I don't see where Karl said it was awesome or that he hated RIM. The reality is that RIM is in a business where Apple and Samsung are currently making 90% of the profits and the BlackBerry 10 is going to be at least a year late. RiM may have enough cash to get through but it is facing a tough time.
Hooper
Premium
join:2001-10-22
Villanova, PA

Re: New low, even for Karl

That fact that he runs these pieces over and over shows his bias against the company. This isn't news. Smaller networks get squeezed by the big providers over carriage fees all the time. Look at AMC and Dish. You either pay up or negotiate. The difference here is that BlackBerry has the entire federal government on their network. So the big boys can't just keep the ball and tell RIM to go home.

Simba7
I Void Warranties

join:2003-03-24
Billings, MT

Re: New low, even for Karl

said by Hooper:

Smaller networks get squeezed by the big providers over carriage fees all the time. Look at AMC and Dish. You either pay up or negotiate.

I call BS. Look at what Viacom is charging DirecTV. $1b to keep their channels? I'd tell them to fsck off and tell the customers what Viacom is up to. "Wonder why your bill is huge?"
said by Hooper:

The difference here is that BlackBerry has the entire federal government on their network. So the big boys can't just keep the ball and tell RIM to go home.

They could. It's not that hard to design a new network. Heck, they probably have one already.

Here's now.

1. Buy a ton of new Android-powered devices
2. Grab the Android SDK and design your own ROM
3. Flash all the devices with the new ROM

Just have the devices connect to VZ, at&t, whatever.. then connect via IPSec VPN to their network. Not that hard.

Why do people make it more complicated than it really is?
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