Research in Motion headquarters in Ontario

The two co-executives of Waterloo, Ont.-based Research in Motion, maker of the formerly-popular BlackBerry, quietly resigned this weekend, turning over leadership of the faltering company to a new chief executive who suggested little needed to change at what used to be Canada’s most valuable company.

Thorsten Heins will replace co-CEOs Jim Balsillie and Mike Lazaridis effective immediately in what analysts are calling a last-ditch effort to rescue a company that has lost at least 88 percent of its peak value and has a share in the cell phone market now below 10 percent.

Heins’ initial comments, intended to calm investors about the company’s precarious position, have instead caused share prices to tumble further out of fear the new CEO remains in denial about the serious state of RIM’s future.

Heins told reporters that no “drastic change” was needed at the company, even though consumers are increasingly abandoning BlackBerry products in favor of Android or Apple iPhone smartphones.  RIM’s tablet, the PlayBook, never got far off the ground and is now regularly being cleared off store shelves at deeply discounted prices.

“If Thorsten really believes that there are no changes to be made, he will be gone within 15 to 18 months. He will be a transitional CEO and this will be a transitional board,” Jaguar CEO Vic Alboini, who leads an informal group of 16 RIM shareholders calling for a radical restructuring told Reuters.

Heins

Corporate users who formerly appreciated the BlackBerry’s secure platform and business-oriented apps are increasingly allowing employees to adopt competing phones because of recent BlackBerry service outages, fewer BlackBerry-compatible apps, and what some have called “endless” software upgrade delays.

Some analysts have dismissed RIM’s former leadership structure for months as “rudderless,” existing in an environment where cut-throat competition between Google’s Android operating system and Apple’s wildly popular iPhone and iPad are reducing BlackBerry’s place in the North American market to an afterthought.

“RIM had its era, but now it seems very hard to gain back market share in the smartphone market even if the top managers are changed,” Mitsushige Akino of Tokyo-based Ichiyoshi Investment Management told Bloomberg News. “The iPhone and Android are well established in the market.”

RIM acknowledged its market share in North America, particularly among younger consumers, has faltered in recent years, but noted BlackBerry products remain popular in certain European, African, and Middle Eastern countries, with growth also seen in Latin America and parts of Asia.

But perceptions of a company past its prime continued last year with the introduction of RIM’s PlayBook tablet, which was criticized for bringing nothing innovative or new to the tablet marketplace.  Even worse, RIM took a drubbing for releasing the tablet without any e-mail application, an ironic lapse for a company that touted it was “the first to reliably deliver e-mail over airwaves” in the 1990s with its BlackBerry devices.

The BlackBerry Playbook

Several serious service outages, some lasting for days, also had a major impact.  RIM’s next major software overhaul, dubbed BB10, has been long-delayed and will not be released until the latter half of 2012 — perhaps too late for the company to regain its footing.

Still, Heins suggests he is prepared to rejuvenate the company’s products with updates to the PlayBook and a new generation of BlackBerry devices.  The company’s better market share overseas may buy some additional time, but analysts warn RIM will fail to attract much attention in the U.S. or Canada if its products do not deliver something better than current generation Android and Apple phones and tablets.

As consumers invest in a growing number of platform-specific apps, a switch to a competing device becomes correspondingly more difficult.  Corporate users also will not tolerate many more major service outages, especially those that extend for days, not minutes or hours.

“There is yet another ace up RIM’s sleeve — the rate plans of North American wireless companies,” said one optimistic RIM shareholder. “BlackBerry devices are not known for consuming a lot of data, so RIM could market their devices to budget-minded consumers that might not be able afford the latest iPhone or Android phone and a high volume data plan to accompany it.”

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Canada’s news networks treat coverage of Research in Motion on about the same level American news media treats Apple, Google or Microsoft.  RIM remains an important contributor to Canada’s economy, so this weekend’s developments got considerable attention from the media.  CTV National News led with the ouster of the two founding co-CEOs of Research in Motion. Here is how CTV viewers saw the news unfold.  (3 minutes)

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RIM Resets: CBC introduces its coverage with a round-up of this weekend’s developments, noting a management shakeup could have profound implications on the Ontario company.  (4 minutes)

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 CBC’s News Now talks with Research in Motion’s new CEO Thorsten Heins about his plans for a revamped BlackBerry and the long-term future for the company.  (8 minutes)

Former Comcast customers throughout southern Illinois and north/central Indiana are saying goodbye to Comcast’s 250GB monthly usage cap now that a new service provider has arrived.  NewWave Communications acquired Comcast properties in the lesser-populated parts of the two states and is upgrading service to areas Comcast ignored for years.

For customers in Olney, DuQuoin, Pickneyville, Mt. Carmel and Benton, Ill., cable system upgrades will soon allow NewWave to provide cap-free 50/5Mbps speeds to homes and businesses.  The upgrades are long overdue.  NewWave often copes with customer criticism regarding the deteriorating cable systems it inherited from other providers.  Customers have previously accused the company of overselling their broadband service and for service outages.  Upgrades generally quiet the complaints.

NewWave Communications, headquartered in Sikeston, Mo. serves over 80,000 customers in the midwest and southeast United States, specializing in smaller communities larger providers typically ignore.  Comcast has spent most of its money and attention in larger cities in Indiana and northern Illinois, and although the company sometimes provide a range of services in more rural communities, upgrades typically came much later.

NewWave’s plan for success involves bringing advanced services to its mid-sized city service areas with the hope it will attract more service bundling and a bigger revenue stream.  NewWave will offer triple play packages of phone, cable, and broadband service and is introducing digital video recorders to a larger share of its customers.

The company has shown no signs of fearing the word “unlimited,” touting it in their literature for phone and broadband service.

A Federal Communications Commission proposal to require Internet Service Providers to report service outages may meet with legal challenges, despite the agency’s insistence the program is designed to help monitor network reliability and potential cybersecurity threats.

The FCC has been seeking service outage reports since May, when it first asked providers for information to track 911 outages over broadband Voice Over IP networks and determine if further regulations were needed to increase service reliability.

The agency is also reported to be concerned about botnet attacks — coordinated denial-of-service attacks on individual websites done for political, personal, or profit-motivated reasons.

Providers object to turning over the data, accusing the agency of exceeding its authority.  Some are signalling they might challenge the requirements in court if the Commission doesn’t curtail the program.

Providers may be objecting because the data collected could become public, allowing anyone to chart the reliability of each respective broadband service provider.  Competitors could potentially use that information to their advantage.  Additionally, data that shows ongoing problems could be used to justify additional oversight or regulatory measures to improve performance.

Jeffery Goldthorp, the FCC’s associate bureau chief for cybersecurity and homeland security admits the agency might not have a clear mandate to pursue its monitoring program, telling CNET there was ambiguity in the agency’s authority.

Republican FCC Commissioner Robert McDowell goes further, saying “in my view, we do not have Congress’s authority to act as suggested.”

Blackberry Butter Spreader

As Blackberry owners enter their fourth day of a serious global service outage, a growing number are now wondering why they are still wasting their time with a phone that has been increasingly abandoned “for something better,” — namely smartphones running Apple’s iOS or Android-powered handsets that now have the largest share of the smartphone market.

Only Nokia is facing market share challenges greater than Waterloo, Ontario-based Research in Motion, the maker of the formerly popular device.  After days of service disruptions, RIM may be getting a lot more acquainted with their town’s namesake than they’d like.

The trouble started Monday with a switch problem at the company’s offices in Slough, Great Britain.  Yes, the same Slough that is home to the workers of British television’s original rendition of “The Office.”

The switch failure soon began impacting customers in Europe, Africa, and the Middle East — the remaining places where RIM still commands a respectable position in the handset market.  On Tuesday, problems spread across South America and India.  Yesterday, North Americans joined the growing crowd of users who found e-mail service and instant messaging spotty, when it worked at all.

Company officials suggest the spreading outages were caused by a cascading series of failures.  When the switch failed, backup systems proved inadequate, and the inevitable sea of “is your Blackberry working?” and “test… test… test” messages started piling up, arriving faster than RIM’s backup systems could handle.  The more frustrated users became trying to send and receive messages, the worse the problems got.

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The Blackberry outage caused a sensation in the United Kingdom, where the phone still maintains a significant market share.  British reporters and analysts had no time to throw softball questions at Blackberry officials.  Watch as Sky News and the BBC report the service failure as a veritable crisis for the company, followed by an increasingly uncomfortable managing director for Research in Motion’s UK operations who faced sharp questioning from a reporter intent on getting beyond the pre-written damage control statement.  In the United States, the declining market share for the Blackberry gave ABC News license to have some fun with the service outage, poking fun at the phone that is increasingly irrelevant to Americans.  (11 minutes)

RIM Founder and co-CEO Mike Lazaridis Apologizes

Blackberry users are dependent on RIM’s networking infrastructure because the company distributes messages through its own servers.  That can deliver more control to RIM’s network engineers, but also exposes the company to spectacular service failures when things go wrong.  And they have gone wrong repeatedly, as customers worldwide report regular sporadic service outages.

Wireless phone companies faced the wrath of angry customers, who initially blamed them for the service outages, but in fact the problems reside with RIM’s own network.

Loyal Blackberry customers have been forced, much to the amusement of other handset owners, into desperate measures.

“My God, I actually had to walk down the hall to my co-worker’s cubicle to ask him a question,” wrote one angry customer.  “Damn you, Blackberry!”

“So much for today’s lunch meeting,” shared another. “Nobody knew what to do or where to meet until someone suggested we call everyone on the phone.  The phone??? Are you kidding me?”

The New York Times shared other serious side effects of the outage:

By Wednesday morning, Wall Street was alight with e-mails from technology departments notifying employees of the problem. Bankers’ meetings fell through when attendees couldn’t look up the locations. Employees were reduced to leaving voice-mail messages.

Perhaps more concerning is the ultimate future of Research in Motion, which has seen better days.  Just three years ago, Blackberry enjoyed a 46 percent market share for mobile devices around the world, according to data from IDC, a research firm. This year, it’s 12 percent and dropping (and is already much lower in North America.)

The Blackberry toe spreader

Wall Street is furious, of course.

“[The outage] is symbolic of what’s going on at the company,” Colin Gillis, an analyst at BGC partners who follows the telecom industry told the Times. “It’s a bloodbath.”

The same can be said for the company’s stock price, which one analyst compared to a train wreck in slow motion.

This morning, Research in Motion made the riskiest move of all — trotting out the historically idiosyncratic and impatient RIM Founder and co-CEO Mike Lazaridis to apologize.  He appeared more contrite than an earlier appearance with the BBC’s Rory Cellan-Jones.  Lazaridis turned up to that earlier interview with his press handler and a lot of attitude.  He soon found himself being questioned by the reporter about the company’s user privacy policies in the Middle East.  After slamming the reporter for the question, Lazaridis ended the interview.

Today, the founder of the company still couldn’t answer the all-important, “when will service be fully restored?”  But as of late this morning, RIM’s co-Chief Executive Officer Jim Balsillie claimed all is well again with the Blackberry, but wouldn’t answer questions about whether customers were entitled to refunds for lost service.

That’s a question mobile carriers are starting to ask RIM as well, particularly as customers look for service credit for the outages cell companies were not responsible for causing.

“This is it. This is the boiling point. Someone has to go over to Waterloo and slap those in charge at RIM,” wrote Crackberry.com forum user BlackLion15.

With tomorrow’s release of Apple’s latest iPhone, RIM officials may prefer a good customer spanking over the alternative — customers throwing their Blackberries in the trash and switching to a new handset.

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Before and After.  During better days for Research in Motion, RIM Founder and co-CEO Mike Lazaridis had no time for ‘impertinent’ questions from British reporters and called an early end to one interview.  Earlier today, he checked his attitude at the door to issue an apology to upset customers.  (3 minutes)

A Time Warner Cable customer in the East Village experiencing a cable, phone, and Internet outage Tuesday got an original excuse from a call center employee at the cable company:

The box that controls the cable, Internet, pretty much everything else for Time Warner Cable in my area of the East Village is located in the basement of a building. In order to service this box, Time Warner Cable needs to contact the super of the building and be let in.

The super of the building, according to the service rep, REFUSES TO LET TIME WARNER INSIDE.

“Why is he refusing?” I asked.

“He wants free cable,” the rep responded.

Apparently, Time Warner has tried to reason with the man, but he refuses to budge. Today, he’s refused to answer the door or his phone. He’s cut off all communication.

“It’s a very unusual situation,” the rep said.

The entire story of the hostage crisis is up on Adam Hunter’s blog, along with plenty of comments from fellow New Yorkers upset with the building superintendent, the cable operator, or both.

What made an unusual situation even stranger is the Time Warner employee actually gave out the address of the building where the standoff was occurring, with the not-much-of-a-stretch-notion that perhaps outraged customers might walk down the street and pay the hostage-taker a visit.

“How close are you to 2nd Avenue,” the representative asked.

“I live between 1st and 2nd, closer to 2nd. I’d love to go over there and try to speak with the super to help resolve this,” Hunter replied.

“Well,” the rep said, “I can’t see any reason I can’t give you the address.”

The drama attracted the attention of the Village Voice, who tracked down the alleged offender, only to be promptly hung up on, and a Time Warner representative who actually confirmed the whole story:

“It does appear that we had an issue with accessing the building where one of our nodes is located,” the representative told the newspaper.  “We did have to remind the landlord of city ordinance that requires us to have 24/7 access to our infrastructure.”

Regardless of who wanted what, Time Warner Cable customers experiencing the effects of several outages in lower Manhattan this week are entitled to service credits.  Just visit Time Warner’s New York City website, complete the e-mail form listing the day(s) you experienced service outages, and request credit accordingly.  Make sure you remind them of the services you have so you are properly credited.