RIM negotiates with Saudis to avoid ban

Research In Motion Ltd. is negotiating with Saudi authorities to avoid a ban on messaging services on its BlackBerry devices.

Saudi officials told The Associated Press that RIM has reached a preliminary agreement with Saudi regulators that would allow the government some access to users' data, and that authorities were examining how such a system might be implemented.

They say the plan involves placing a BlackBerry server inside Saudi Arabia, which already has strong controls on the internet to block morally offensive and political content and maintains strict controls on freedom of expression.

RIMof Kitchener-Waterloo, Ont., declined to comment on the state of negotiations. Saudi Arabia's three mobile operators couldn't be reached for comment.

Late Saturday, Saudi Arabia's telecom regulator said it was giving mobile operators more time to finalize a deal to allow BlackBerry messaging to continue, staving off a ban of the service in the Arab world's largest economy.

The oil-rich kingdom's Communications and Information Technology Commission said companies had 48 hours ending Monday to test a system that would allow them to avert a ban.

No details were provided.

A deal that allows Saudi officials to access user data in the conservative Islamic country could set aprecedent for how technology companies and governments interact around the world.

A number of countries say they see BlackBerry devices as a security threat because encrypted information sent on them is difficult, if not impossible, for local governments to monitor when it doesn't pass through domestic servers.

The United Arab Emirateshas said it plans to block BlackBerry email, web browsing and messaging services starting in October. India, Indonesia and Lebanon have also raised concerns about the devices.

Simon Simonian, a telecommunications analyst at Dubai-based investment bank Shuaa Capital, said the way Saudi Arabia solves its impasse with RIM could provide a model for other countries eyeing BlackBerry crackdowns.

"Everybody will be closely monitoring the developments in Saudi Arabia to see if it could set an example and become a template for resolution in the U.A.E. or other countries," he said.