Research in Motion Quietly Creeps Back Toward $50 (RIMM)

The United Arab Emirates has dropped a threat to cut BlackBerry services after the nation said that Research in Motion RIMM is now compliant with regulations. "The Telecommunications Regulatory Authority (TRA) has confirmed that BlackBerry services are now compliant with the UAE's telecommunications regulatory framework," state news agency WAM said in a statement issued early on Friday. "Therefore all Blackberry services in the UAE will continue to operate as normal and no suspension of service will occur on October 11, 2010," it said, without giving details of the deal. According to a Reuters report, "The UAE had said it would suspend BlackBerry Messenger, e-mail and web browser services on October 11 unless RIM worked out a way to locate its encrypted computer servers in the country so that the government can get access to e-mail and other data -- the same access it says the United States, Russia and other states have." "It's not clear what the fix was and it's a big issue," Theodore Karasik, a Dubai-based security analyst told Reuters. "If the regulator says the fix answers the security concerns of the UAE that could mean a server has been placed here, or a storage facility that the government can access and monitor." Still, it's hard it ignore that shares of Research in Motion have surged since hitting $42 in late August. The stock now sits above $49, and could continue to rally if the company can arrange deals with other nations that express security concerns. While there are still questions about the ability of Research in Motion to innovate and compete in the crowded phone market, at least most of the security issues appear to be a thing of the past. Shares of Research in Motion are up 2.4% this afternoon, to $49.08.