UK Governments Says BlackBerry Software Not Secure Enough

The Communications and Electronic Security Group (CESG) is the UK government’s national technical authority for information assurance. The group is responsible for enabling secure and trusted knowledge sharing to help companies achieve their business aims. CESG provides advice and assistance on the security of communications and electronic data.

Recently, the CESG rejected BlackBerry’s newest software. It was marked as not secure enough for essential work. This is another blow to BlackBerry. Missing out on government business could cost BlackBerry revenue in the millions. BlackBerry is hoping that the BB10 software along with the new Z10 smartphone will spark stimulation in the company’s future.

Unfortunately, it seems that analyst reports suggest that sales in the UK of the touchscreen Z10 handset are slowing after an initial spurt among consumers when they went on sale in January. This is leaving sellers with surplus stock which may force them to sell the Z10 at discounted prices.

The Z10 is slated to go on sale in the U.S. this Friday, March 22, 2013. ComScore, an Internet technology company that analyses what people do as they navigate the digital world, reported that BlackBerry, which had a market share of 22 percent in September 2010, now has only a 5.9 percent share in January 2013.

The previous version of the BlackBerry software, 7.1 was ranked by the CESG in December 2012 with a “Restricted” classification. This is two levels below the “Secret” classification for the UK government. BlackBerry’s security feature, BlackBerry Balance is designed to separate work from person accounts. The two are supposed to have no contact with each other preventing data from being copied between the two. While version 7.1 passed CESG’s tests, BB10 failed the same security tests.

BlackBerry is working on resolving the issues, but as of now, there is no date as to when a revised version of the software would be available.

In a statement made by BlackBerry, the company said, "We have a long-established relationship with CESG and we remain the only mobile solution approved for use at 'Restricted' when configured in accordance with CESG guidelines. This level of approval only comes following a process which is rigorous and absolutely necessary given the highly confidential nature of the communications being transmitted.”

"The current restructuring of this approval process, due to the Government Protective Marking Scheme review and the new CESG Commercial Product Assurance scheme has an impact on the timeline for BlackBerry 10 to receive a similar level of approval. The US government's FIPS 140-2 certification of BlackBerry 10 and the selection of BlackBerry 10 by the German Procurement Office and Federal Office for Information Security underline how our new platform continues to set the standard for government communications. We are continuing to work closely with CESG on the approval of BlackBerry 10 and we're confident that BlackBerry 10 will only strengthen our position as the mobile solution of choice for the UK government."

On another note, it looks like Chinese PC and smartphone maker Lenovo is looking to takeover BlackBerry. The Canadian industry minister declined to say whether he would block such an attempt. Christian Paradis told Reuters, "I hope BlackBerry will continue to be a Canadian champion in the world, that it grows organically. We don't know what might happen. The market is very aggressive. When you talk about the telecoms sector … this is a very, very aggressive sector."

There is a great deal of concern. Last year CNOOC, a Chinese state owned oil company, bought Nexen, a Canadian energy company. Analysts believe the US and UK governments might block a similar Chinese bid for BlackBerry because of its importance to secure e-mail.