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  1. the_sleuth's Avatar
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    Default RIM to tier service fees based on customer requirements

    Heins on conference call regarding RIM's BIS/BES service revenues:

    BRIEF-RIM to tier service fees based on customer requirements
    6:06pm EST

    TORONTO, Dec 20 (Reuters) - Research In Motion Ltd :

    * Chief executive Thorsten Heins says service fees will be tiered based on what customers require in terms of security, manageability, other services
    * CEO Heins says looking to develop blackberry messenger service to create additional service revenue
    * CEO Heins says carriers are committed to spending marketing dollars to promote blackberry 10 devices
    * Chief financial officer Brian Bidulka says average revenue per user declined last quarter as company worked to maintain subscriber base
    * CEO Heins says may still introduce new blackberry 7 models for more cost-conscious parts of the world



    BRIEF-RIM to tier service fees based on customer requirements | Reuters
    Evolution of Communication: Rotary Phone > Dial Tone > Motorola Walkie-talkie > Nokia 2160 > Nokia 6190 > Samsung a460 > Samsung a920 > BB 8700 > BB 9530 > BB 9860 > PlayBook > Z10 > HTC One X+>Z30
  2. silversun10's Avatar
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    also he indicated they will license BB10, no details as to whom though
  3. advcomputer's Avatar
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    They can even make money via BBM.

    BBM can be used to generate revenue via 2 mechanisms.

    1: Sponsered ( Paid per impression advertising )

    or

    2: End User can select an option at say $2.00 / month not to have ad's display.

    Either way - win win for RIMM
    Jeff
  4. sf49ers's Avatar
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    Quote Originally Posted by advcomputer View Post
    They can even make money via BBM.

    BBM can be used to generate revenue via 2 mechanisms.

    1: Sponsered ( Paid per impression advertising )

    or

    2: End User can select an option at say $2.00 / month not to have ad's display.

    Either way - win win for RIMM
    or

    Jim's vision of having it on every handset as a service offering and in this scenario the carriers foot the bill..also means bye bye text messaging as we know.
  5. howarmat's Avatar

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    honestly i think ad based BBM is a horrible idea
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  6. the_sleuth's Avatar
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    I believe this might open the way for BBM to become platform agnostic. RIM should make money from other users on IOS and Android to use BBM.
    Evolution of Communication: Rotary Phone > Dial Tone > Motorola Walkie-talkie > Nokia 2160 > Nokia 6190 > Samsung a460 > Samsung a920 > BB 8700 > BB 9530 > BB 9860 > PlayBook > Z10 > HTC One X+>Z30
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    Quote Originally Posted by sf49ers View Post
    or

    Jim's vision of having it on every handset as a service offering and in this scenario the carriers foot the bill..also means bye bye text messaging as we know.
    right i think that is what they would do before making it ad based
    ~Matt
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  8. advcomputer's Avatar
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    I don't know how it would do as a service offering.

    I think many would frown from paying extra, especially when they have text messaging to contacts friends, etc.

    -j
    Jeff
  9. bk1022's Avatar
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    Quote Originally Posted by advcomputer View Post
    I don't know how it would do as a service offering.

    I think many would frown from paying extra, especially when they have text messaging to contacts friends, etc.

    -j
    If they offer it as a service, it would have to be free for the carriers and non-premium users. RIM would have to find a way to generate their own revenue. Maybe offer regular BBM for free, but have added business features for nominal costs.
  10. alan510's Avatar
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    I don't know this for sure but doesn't RIM currently have pricing in place for lower end devices that are based on services offered? I seem to have read about this in the past. I wonder if they are thinking about extending that model.
  11. Rello's Avatar
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    I would be highly upset if ads came to bbm. Well.....maybe once I get more contacts
    QNX and LTE, hand me a pen and let's do this.
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  12. xandermac's Avatar
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    Default RIM to tier service fees based on customer requirements

    They'll have to find something to replace the 36% of revenue they earned from service fees. The main reason the stock is taking a beating tonight is because everyone knows that service revenue is going to take a massive hit. Carriers no longer want or need to absorb the RinTax. RIM need to announce some plans, see how people react, and adjust from there. I don't see people paying extra for BBM tho and we all know the carriers won't continue to absorb the costs. This will come as a shock to a lot of blackberry users if they start to see new junk fees on their bills.


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  13. cjcampbell's Avatar
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    I think their revenue from BBM isn't via advertising or charging users to use it. I think it's different. There are things like BBM Music and BBM Pay that can generate income. Obviously, they have an idea as to what's going on financially, look at the ER, so let's give them a chance to show us what they have when the time comes. Another way, is the NFC Visa payments.... I'm sure they will take a small piece of that. Why else would they have pushed to make it happen? Just because? We have no idea what's going to be introduced come January 30 so lets not get up in arms around sheer speculation as to how they plan to generate service income via their services.
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    If they start i have to pay for BBM to use it, i will look at it very carefully.
    And if it doesn't suit me , i can say GOODBYE BB10.
    Are they going to nickel and dimes us?
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    Remember that they're talking about transacting money via BBM; there's an opportunity for service fees right there...

    EDIT: Another thing to remember: BlackBerry is a struggling brand at the moment, and it's easy for the carriers to say "lower your NOC fees, or else!!". If the brand can be re-established and demand increases, the carriers might be a little happier. Yet another indication of how important BB10 is to RIM's turnaround.
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    Does anybody remember msn chatrooms, when they went to pay, what happened?
  17. lnichols's Avatar
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    I better not see ads for BBM on a Blackberry. I buy the device and the service. I'm fine if they want to charge other platforms or sling ads to put BBM on iOS or Android to make money on the deal, but Blackberry users shouldn't have ads period for Blackberry services.
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  18. Denise in Los Angeles's Avatar
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    Quote Originally Posted by sf49ers View Post
    or

    Jim's vision of having it on every handset as a service offering and in this scenario the carriers foot the bill..also means bye bye text messaging as we know.
    Quote Originally Posted by advcomputer View Post
    I don't know how it would do as a service offering.

    I think many would frown from paying extra, especially when they have text messaging to contacts friends, etc.

    -j
    T-Mobile began offering free BBM this year if the customer has their unlimited texting plan. Sort of like the Boost Mobile plan that has a BBM and WiFi plan, I think.
  19. silversun10's Avatar
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    with the added competition and Walmart dropping prices for Iphones, was there really anybody who believed the service fees would not come down? honestly? seriously?
    get real.......
  20. T-Raww's Avatar
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    Bad idea then people will just look at android or ios and pick them up who did nt know or just being hardened. And don't want to buy bb cause of. Bad press report and and bb10 wouldntnmake money on hardware
  21. hkkelvinlee's Avatar
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    Default RIM to tier service fees based on customer requirements

    RIM stock price dropped big time aftermarket (over 10%) allegedly because of this plan on service fee. Even Crackberry is not exactly upbeat about it.

    I for one see this positively if implemented well. I am happry paying like USD9/month like I do to local carrier for BIS access but I am sure it is PITA to many consumers. I remembered I felt a little unease when knowing for 1st time this extra premium one needs to pay for the privilege of using BB. In where I am (Hong Kong), I cannot even use BB browser (even with unlimited date plan) without also paying for BIS. It is ULTRA off-putting to consumers, which explains not many peoples use BBs here other than those BES devices issued by their employers.

    Tiered plan makes perfect sense to everyone in long run. You pay for service you care for. This will I think help to boost consumers reception of the device and tally well with the BYOD drive with Blackberry Balance. Consumers need to buy devices before they could be plugged in corporate network. I am sure increase in BB10 uptake will off set service fee loss by better hardware earnings.

    The key is implementation. RIM has to pace themselves in order not to hurt cash-flow. This 1st interview is not a good start. Now the CEO needs to salvage the situation by conveying clearer message and roadmap on service fee overhaul. I wish they did not reveal that in the interview actually before they implement it.

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    Last edited by hkkelvinlee; 12-21-2012 at 08:02 AM.
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  22. cjcampbell's Avatar
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    Quote Originally Posted by hkkelvinlee View Post
    RIM stock price dropped big time aftermarket (over 10%) allegedly because of this plan on service fee. Even Crackberry Kevin is not exactly upbeat about it.

    I for one see this positively if implemented well. I am happry paying like USD9/month like I do to local carrier for BIS access but I am sure it is PITA to many consumers. I remembered I felt a little unease when knowing for 1st time this extra premium one needs to pay for the privilege of using BB. In where I am (Hong Kong), I cannot even use BB browser (even with unlimited date plan) without also paying for BIS. It is ULTRA off-putting to consumers, which explains not many peoples use BBs here other than those BES devices issued by their employers.

    Tiered plan makes perfect sense to everyone in long run. You pay for service you care for. This will I think help to boost consumers reception of the device and tally well with the BYOD drive with Blackberry Balance. Consumers need to buy devices before they could be plugged in corporate network. I am sure increase in BB10 uptake will off set service fee loss by better hardware earnings.

    The key is implementation. RIM has to pace themselves in order not to hurt cash-flow. This 1st interview is not a good start. Now the CEO needs to salvage the situation by conveying clearer message and roadmap on service fee overhaul. I wish they did not reveal that in the interview actually before they implement it.

    Sent from my BlackBerry 9800 using Tapatalk
    Well since he was asked outright, he didn't have much of a choice to say what was going to happen. There is an obligation to shareholders to disclose things like that. You are right, that they have a lot of work to do to explain, in detail, their plans for this tiered move.

    I, for one, will pay the extra (not really) $5/mth to go through BIS and NOC in order to save on data consumption and have that added level of security. It may not be important but I just like having it there. Call me paranoid but hey, we all have our idiosyncrasies. The reason I say in parenthesis, not really, is because I have 500mb per month data. I have never, ever, come close to using it. The majority of my data use is via email, and messaging, and yes, it is a lot. Yes, I watch the odd utube vid and stream some music and surf the web, but because of this set up, I don't need any more. Hel* I have more data than I need. For those who want iPhone and Android structured plans due to high media consumption, fair enough, RIM has answered and said here you go.

    I think this way is a good move. Especially reading sooooo many posts about anti BIS sentiment.... the cost that comes with it. Well, can't complain anymore (not sure if this last point holds water but it seems like a logical assumption based one what was announced).
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  23. GTiLeo's Avatar
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    #23  

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    personally i would want to continue to pay the BIS service fee, what the fee offers me is cheaper then if i have to upgrade my plan to offer more text and more data usage. to have to upgrade from y 500mb or 1-2 gig of data would be more cost then to keep whatever service fee RIM is charging me for having a BIS plan, but most consumers don't see this advantage they just don't want to pay the increased fee but don't realize the benefits behind what RIM has to offer in most cases its the data compression and the BBM
  24. bk1022's Avatar
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    Data compression is becoming less of an issue nowadays. You can normally go from 100MB to 500MB for $5/mo and you can go to >1GB for another $5. Data is getting cheaper but processing it is getting more complicated and expensive.

    The real value for RIM is they have a lot of compression + encryption + push IP technology and infrastructure and they need to unlock the value there. For the life of me I don't know why they don't have a BIS dev kit so small developers can leverage the full power of BIS in ways no one has thought of yet.

    Perhaps an openBIS if you will. You could set up your own BIS servers for a small fee or simply go with RIM as a hosted solution. There are certain functions that many apps need. Guaranteed realtime delivery and distribution of data is one. Cloud services with high bandwidth and security capabilities is another.

    RIM would do well to strike a deal with Google to find a way to leverage these services while retaining some control.
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  25. timmy t's Avatar
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    #25  

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    Like I said before, have BBM accessed through a webservice and charge people $2 or $3/month to use it, regardless of handset type or carrier. Then make more money off of 75% of all handsets.
    Plus, since you are bypassing carriers, they cannot pressure you into lowering rates.
    If it is good enough, people will pay $3/month.
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