BlackBerry-maker Research in Motion said it is hopeful that its dispute with India and the UAE over the issue of data security will be resolved successfully, but reiterated that it "cannot compromise the security architecture of its enterprise solution."
RIM is continuing discussions with governments in India, UAE and other countries, as well as with service providers, and "they believe we have made good progress in those discussions," RIM Co-CEO Jim Balsillie said.
"I am optimistic that a positive and constructive outcome can be achieved," he said in a conference call with analysts on Thursday.
Balsillie, however, stressed that while it is "respectful of government needs and fully cooperating to comply with lawful requirements on an industry standard basis, we cannot compromise the security architecture of the BlackBerry enterprise solution."
"RIM simply has no ability to read the encrypted information and has no master key or backdoor key to allow access," the Los Angeles Times quoted Balsillie as saying.
He said the company knows it is a "fundamentally important security feature" for its corporate clients.
India had threatened to ban corporate e-mails and messenger chatting services on BlackBerry amid fears that encrypted communications could be used by militants to plan attacks.
RIM was given time till August 31 to come up with a way for Indian authorities to monitor e-mails and messenger services.
RIM has been given a 60-day reprieve from the Indian government to continue services in the country on the condition that the Canadian firm would have to ultimately set up a local server to continue with its full services beyond November.
RIM provides corporate e-mail and instant messaging services to about one million users in India. The company posted a net income of $796.7 million in the second quarter, ended August 28, up from $475.6 million in 2009.
Its second-quarter shipments climbed 45 per cent to 12.1 million units vis-a-vis the previous year. Revenue rose 31 per cent to $4.62 billion for the second quarter. About 52 per cent of BlackBerry's revenue came from outside the US and more than 45 per cent of BlackBerry subscribers are outside North America.