March 28, 2024

RIM Says BlackBerry Systems Are Restored

Research in Motion said Thursday that it had resolved the technical issues that had frustrated BlackBerry users on five continents for several days, but that it might take a while yet for service to return completely to normal.

Jim Balsillie and Mike Lazaridis, the company’s co-chief executives, said that the backlog of e-mails and messages, which has been building since Monday in some parts of the world, was still creating delays for some BlackBerry users.

“I want to apologize to all the BlackBerry users we let down,” Mr. Lazaridis said during a news conference. “Our inability to quickly fix this has been frustrating.”

The service problems, the executives said, apparently resulted from the failure of a crucial piece of switching hardware in the closed network RIM operates for BlackBerry data services. That was followed by the failure of a backup system.

The result was the longest and most extensive disruption to BlackBerry service since the device was introduced 12 years ago. The hardware shut down service in Europe, the Middle East and Africa on Monday, which Mr. Lazaridis said created “a ripple effect” around the rest of the world.

While Mr. Lazaridis offered a separate video apology to customers, both he and Mr. Balsillie declined to answer questions about what compensation, if any, RIM intends to offer users.

“Our focus has been 100 percent on getting systems up and running,” Mr. Balsillie said, adding that the company will now begin to look at ways of placating customers.

This week’s hit couldn’t come at a worse time for the handset maker, which is fending off a growing crowd of agitated investors calling on the company to explore strategic options and new leadership. Shares of the company have fallen nearly 60 percent this year as smartphone buyers increasingly choose Android phones or iPhones. On Thursday, shares of RIM were trading 3.2 percent lower, at $23.10.

Analysts say that RIM was battling to restore more than service to the millions faced with glitches to BlackBerry cellphone service. The company was also fighting for its foothold in a rapidly changing industry.

“It’s symbolic of what’s going on at the company,” said Colin Gillis, an analyst at BGC partners who follows the telecom industry. “It’s a bloodbath.”

The Waterloo, Ontario, company’s grasp on the global smartphone market has steadily declined over the past few years. In 2008, the company commanded 46 percent of the market for smartphones around the world, according to data from IDC, a research firm. But by the first half of 2011, that hold had weakened under the surging popularity of the products from rivals, sliding to 12 percent. The company had hoped to revive its business and dazzle consumers with the BlackBerry PlayBook, a 7-inch touch-screen tablet, but the device has yet to gain traction among a broad audience.

At the same time, dozens of sleek new Android devices are arriving on store shelves in time for the holiday season and Apple is releasing the latest version of the iPhone on Friday.

Ken Dulaney, an analyst with Gartner, said that the biggest remaining question was whether the recent hiccups would prompt current BlackBerry owners to switch to other handsets. “Wireless access has become mission-critical and people depend on it,” he said. “Any kind of outage is a serious problem.”

Frustration erupted on social media sites like Twitter and online forums that cater to the owners of BlackBerry devices. “Uugh. If i don’t get back to you today, this is why. BlackBerry outage appears to be spreading,” a user named Diana_Knight posted to Twitter on Wednesday.

On CrackBerry.com, a popular online forum that caters to BlackBerry owners, a thread called “Enough is Enough” had attracted thousands of views and hundreds of comments by Wednesday afternoon. “This is it. This is the boiling point. Someone has to go over to Waterloo and slap those in charge at RIM,” wrote a user going by the name BlackLion15.

Such failures are not rare occurrences for RIM. Last month, BlackBerry’s popular messaging service crashed for several hours in parts of Latin America and Canada.

Because RIM sends its data through its own servers, any disruptions are felt by larger swaths of users than for other handset makers. That can be infuriating for wireless carriers who are helpless at the annoyances of their customers who are using BlackBerrys on their network.

Representatives for Verizon, ATT and Deutsche Telekom, all of which sell BlackBerry phones, declined to comment, deferring to RIM to address the outages.

On Thursday, Mr. Balsillie said senior executives at carriers around the world had been supportive rather than angry.

“People understand the complexity of these systems and when something like this happens everyone pulls together,” he said.

The RIM failure coincided with a major wireless industry conference in San Diego, where many companies that carry RIM’s traffic complained of getting little or no information about just what had gone wrong or how long it would take to fix. Others were less concerned about the industry than their own communications. “With this outage, people will say enough is enough.” said Frank Nein, an industry analyst with 9Sight2020, who said he had met representatives of RIM Tuesday. “And they didn’t have any answers about the network. They didn’t have any decent response to all these consumer devices coming into their turf.”

A few financial professionals saw a small silver lining on Wednesday. Alex Maloney, a director at Perkins Fund Marketing, a placement agent for hedge funds, said the service interruption was actually a nice vacation from gloomy e-mails.

“This is not necessarily the worst time for an outage,” he said. “It’s not like people are getting a whole lot of positive e-mails this day, given the turmoil in the financial markets.”

Quentin Hardy and Evelyn M. Rusli contributed reporting.

This article has been revised to reflect the following correction:

Correction: October 13, 2011

An earlier version of this article misidentified the market that RIM had a 46 percent share of in 2008, according to IDC, as the market for mobile devices.

Article source: http://feeds.nytimes.com/click.phdo?i=3aa01975053b37e20023666eae23f771

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