News Analysis: Berry In A Fix

The mobility market is bustling with activity. The e-mail market,

particularly, appears to be heating up with Airtel announcing tie-up with

Microsoft to offer Windows Mobile 5.0 to its corporate customers. While Airtel

has broadened its portfolio of offerings for mobile mail users, RIM, the maker

of Blackberry, surprisingly, continues to remain reluctant to expand its

offerings through other mobile service providers in India. Users of Hutch or

other operators cannot go for Blackberry, as there is no number portability in

India. The corporate users also feel that going for another device, just for

e-mail makes little sense.

RIM's Contention



Globally, Blackberry is increasingly becoming popular instead of mobile

e-mail. But instead of capitalizing on this advantage, RIM has taken an

exclusive route to expand in India. When VOICE&DATA asked about RIM's

reluctance to go to other service providers like Hutch, even in the wake of

Airtel's newly announced relationship with Microsoft, the vice-president, Asia

Pacific, RIM, Norm W K Lo said, “We are happy with the relationship with

Airtel, as it is adding a great value to Blackberry users. We will continue to

maintain its exclusive tie-up with Airtel.” He refused to comment on whether

RIM was in talks with other service providers.

Global Situation



Incidentally, RIM has partnered with multiple operators in countries like

the US, Hong Kong and Singapore. Interestingly, Microsoft has not gone for an

exclusive arrangement with Airtel. For example, in the US, Microsoft boasts of

clients like Verizon, T-Mobile, Sprint and Cingular.

RIM's global competition includes Palm, Hewlett-Packard, Nokia, and

Motorola, as far as the device is concerned. On the software side, its rivals

include Good Technologies and Microsoft. However, Blackberry's edge over

Windows Mobile 5.0 lies in its capability to provide end-to-end solution unlike

Microsoft. It provides all the software components of push e-mail solution, but

not the device itself and has tied up with HP and i-mate for device support. 

Bharti Airtel's Competitive Edge



The tie-up with Microsoft was Bharti Airtel's masterstroke to further

consolidate its position of being a mobile e-mail provider with wide range of

devices and options. It has got a definite lead over its competitors like Hutch,

Idea, and others. The incumbents-BSNL and MTNL-also have not really been

able to focus on the high-end segment.

According to official response of Bharti Airtel, “With the Windows Mobile

5.0, Airtel has expanded its business solutions portfolio.

Windows Mobile 5.0 complements Blackberry. Depending upon the usage

patterns, requirement and suitability, customers can choose what they want.

We now offer them a choice with the latest in the field of on-the-go

access to business information.”

Way Forward



Blackberry's strategy of continuing its exclusive relationship with Airtel

is a big limitation. It has become a real hurdle in the growth of Blackberry

devices in India. According to an estimate, out of a total mobile population of

106 mn, there are around 25,000 Blackberry phones in India (there is a

non-disclosure arrangement between Airtel and Blackberry to not reveal the total

number of such devices in the country). While it is a win-win situation for

Airtel in the light of its recent Windows Mobile 5.0 tie-up, RIM appears to be

in a spot.

Consider the offerings of other mobile service providers. There is a strong

feeling among other service providers like Idea Cellular that they have been

deprived of the privilege to offer Blackberry devices to its corporate

customers. The company organized a vociferous media campaign sometime back to

prove that other devices offered by the companies (Ericsson, Nokia and others)

were superior to Blackberry. Even Hutch Mail claims to offer almost same level

of services as Blackberry.  However,

a random check made by VOICE&DATA reveals that some CEOs using Blackberry

have a high level of satisfaction.

Only time will tell whether RIM extends its multi-operator strategy for India

while considering the increase in numbers of high-end users, who depend on

mobile e-mail. The company has just come out of a long-standing patent dispute

with NTP after paying $612.5 mn. With Motorola and Nokia planning to introduce

more e-mail devices to counter Blackberry, RIM's task is well cut out.

Sudesh Prasad



sudeshp@cybermedia.co.in