AT&T and Verizon Wireless Reportedly Pressuring RIM to Cut Carrier BlackBerry Fees
Research In Motion is in a bind. Now the company’s problems are growing even larger as AT&T and Verizon Wireless are reportedly pressuring RIM to lower their BlackBerry Internet Service fees they charge each month.
Currently, these fees have generated $4.09 Billion in annual revenue. “There’s definitely negotiations going on right now to reduce,” said Sameet Kanade, a technology analyst at Northern Securities.
Currently, Kanade estimates revenue from the monthly fee could drop 17 percent to $3.4 billion this year and another 18 percent to $2.8 billion in fiscal 2014. “RIM intends to continue generating a revenue stream from the services we offer,” said Nick Manning, a spokesman for RIM. However, he declined to elaborate on any requests for fee reductions.
The services fees make up a third of RIM’s revenue. Do you think they should lower their fees to appease carriers?