November 22, 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

Media Decoder Blog: Netflix to Split Business in Two

In a letter posted on the Netflix Web site late Sunday night, the company’s chief executive, Reed Hastings, apologized for the way he handled recent changes in pricing and subscription services, and announced that the company would split into two businesses, with the DVD-by-mail service to be renamed Qwikster.

The pricing changes were announced this past summer and have since caused Netflix customers to walk away in droves. “I messed up,” Mr. Hastings said. “I owe everyone an explanation.”

He said the DVD-by-mail service, where the company began, will become the Qwikster brand with its own management team. The name Netflix will remain for movie streaming, according to the company’s statement, which was posted around 9 p.m. Pacific time. Qwikster and Netflix will now appear as separate lines on customers’ credit card bills.

The price of the company’s services will not change.

“We’re done with that!” Mr. Hastings said.

It was, after all, just that kind of change that prompted outrage among Netflix customers this summer, when the cost of a subscription that included unlimited online movie streaming plus one DVD-by-mail at a time went from $10 per month to $16 per month. That 60 percent increase has cost the company about 1 million of its 25 million customers, a greater exodus than they expected, company representatives have said.

But Mr. Hastings did not apologize for increasing subscription fees, or for asking customers to think about the two services separately. Instead, he blamed his own “arrogance based upon past success” for a failure to communicate in the face of a fast-changing business model.

“We realized we should have communicated better in July when we announced the price change,” said Steve Swasey, company spokesman. “That’s a mea culpa on that.”

Article source: http://feeds.nytimes.com/click.phdo?i=0c12cc842b9c4a412012f24d43664f76

Economic Research Institute Created in Hong Kong

Opinion »

Bloggingheads: Hooray For Failure!

Jamelle Bouie of The American Prospect and Peter Suderman of Reason on budget cuts and the Congressional supercommittee.

Article source: http://www.nytimes.com/2011/08/26/business/global/economic-research-institute-created-in-hong-kong.html?partner=rss&emc=rss

Business Briefing | FINANCE: Bank in Kansas Becomes 64th Failure This Year

Opinion »

Bloggingheads: ‘Weird’ Mitt Romney

Ryan Lizza of The New Yorker and Ramesh Ponnuru of National Review debate a possible line of attack against Mitt Romney.

Article source: http://feeds.nytimes.com/click.phdo?i=1619569772cf2e065539e1a8b9b4352e

Europe Gives $17 Billion to Greece to Avoid Default

As part of the announcement, the finance ministers said they would cancel a meeting planned for Sunday, when the conditions for a second bailout were expected to be decided, and hold a videoconference on Saturday instead.

The size of a second bailout for Greece has not yet been determined. But an official with the Austrian Finance Ministry, Thomas Wieser, was quoted by Bloomberg News on Friday as saying that Greece could receive as much as $123 billion (85 billion euros) in new financing, including a contribution from private investors.

Officials decided to postpone their meeting Sunday after concluding that there was still significant disagreement among private investors about how their contributions to a second Greek rescue should be structured, according a person who spoke on condition of anonymity because he was not authorized to speak publicly.

Several diplomats and officials briefed on the talks said that settling on a second loan package by Sunday night was too ambitious, and that holding a meeting that did not produce a detailed agreement would be interpreted as a failure by the financial markets.

Without the meeting Sunday, the next opportunity to reach a deal would be July 11, at the next meeting of euro zone finance ministers in Brussels.

The release of the immediate aid, part of an original 110 billion euro bailout ($159 billion) for Greece agreed to last year, should help the country meet its financing needs through the summer. By September, Greece will need a new rescue, which leaves only a few months for euro zone ministers to draft a package.

Olli Rehn, the Europe’s commissioner for economic and monetary affairs, said on Friday that he was confident that the payment would be released this weekend.

“I’m certain we now have a sufficient consensus that we can take a decision during the weekend, and on the fifth, transfer the Greek loan package,” he said on Bloomberg Television in Helsinki, Finland.

Part of the discussion on transferring additional aid to Greece has hinged on demands by the International Monetary Fund that the European Union fill any holes in Greece’s budget in the coming year.

The I.M.F. said last month that it would need that assurance if it were to release its portion of the immediate aid. Countries including the Netherlands have said they will provide guarantees for Greece only if there is a credible plan for substantial private investor involvement in the second bailout.

While these issues have blocked negotiations for weeks, the passage this week of new austerity measures by the Greek Parliament, and plans put forth by the banks and other holders of Greek debt to roll over their holdings, are helping to move the discussions on a second bailout forward.

Meanwhile, several telephone conversations have taken place between Mr. Rehn and John Lipsky, acting managing director of the I.M.F., who is scheduled to take part in the videoconference on Saturday. Mr. Lipsky needs to make a recommendation to his board, which meets Friday.

On Friday, European officials expressed confidence that a compromise could be found that would allow the immediate aid to be released.

“We think we can come up with something which is enough to convince the I.M.F. over the 12 billion euros,” said one official, who had been briefed on the talks, “but on the other hand a comprehensive package involving the private sector is such a tricky deal that Sunday — and possibly the 11th — is far too optimistic.” The official spoke on condition of anonymity because he was not authorized to discuss the negotiations publicly.

The link between the two issues suggests that the broad outlines of a second bailout for Greece will probably be put forth by European officials as they try to persuade members to back any deal reached with the I.M.F.

Europe’s finance ministers have not confirmed the 85 billion euro figure for the second bailout. Calculating an amount is complicated because of the different elements that would be used in a new rescue effort.

The cancellation of Sunday’s meeting might also increase criticism of the head of the Eurogroup of finance ministers, Jean-Claude Juncker of Luxembourg. He called the gathering Sunday after finance ministers failed to reach a deal at the last euro zone meeting in Luxembourg.

Meanwhile, the Institute of International Finance, a lobbying group of international financial institutions, said there was broad support for the idea of participating in further aid for Greece. “The private financial community is ready to engage in a voluntary, cooperative, transparent and broad-based effort to support Greece,” it said Friday.

The options include rolling over or extending bonds that mature into long-dated instruments. It was also important to consider debt buyback proposals to reduce long-term debt, the institute said. Under a French plan announced in the past week, the private sector would reinvest at least 70 percent of the proceeds of bonds maturing before the end of 2014 into new 30-year Greek debt.

German banks indicated Thursday that they would be willing to adopt a similar plan.

Article source: http://feeds.nytimes.com/click.phdo?i=b4c372ee1876b7811b7a6e063a18ce93