RIM’s Service Fee Changes Spurs Stock Decline
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Research In Motion Ltd.’s decision to scrap service fees for some users is threatening its most profitable source of revenue, ending the BlackBerry maker’s three-month stock rally.
Subscribers who want enhanced services, including advanced security, will continue to pay a fee, while others who don’t use such services “are expected to generate less or no service revenue,” Chief Executive Officer Thorsten Heins said yesterday on a conference call. Service fees accounted for about $982 million in sales last quarter, out of a total of $2.73 billion.