BlackBerry Users See the Fail Whale Twice in a Week

BlackBerry users faced a second disruption in less than a week last night, prompting phone maker Research In Motion Ltd. to release new software to restore e- mail service.

The breakdown may stem from flaws in two recent versions of the BlackBerry Messenger program, the Waterloo, Ontario-based company said in an e-mailed statement today. RIM said it has taken action to fix the glitch, which didn’t affect phone or text-messaging service.

The breakdown affected customers in North America, home to about two-thirds of RIM’s revenue. Suffering two disruptions so close together may frustrate consumers, one of RIM’s biggest growth areas, said Jeff Fidacaro, an analyst at Susquehanna Financial Group in New York.

“They’re vulnerable to something like this because the perception of BlackBerry is that it’s a superior messaging device,” said Fidacaro, who has a “neutral” rating on the stock and doesn’t own any RIM shares. “RIM has to be very careful that they can offer reliability and uninterrupted service -- if it becomes frequent, then their reputation could be at risk.”

Customers who downloaded BlackBerry Messenger versions 5.0.0.55 and 5.0.0.56 since Dec. 14 should download the new version, RIM said. Its BlackBerry Curve was the top consumer smart phone in the U.S. in the third quarter as price cuts fueled sales, according to researcher NPD Group Inc. Models of the iPhone, made by Cupertino, California-based Apple Inc., took second and third place.

RIM fell 4 cents to $67.18 at 9:32 a.m. New York time on the Nasdaq Stock Market. The stock had climbed 66 percent this year before today.

The previous BlackBerry disruption, which affected consumer users, occurred Dec. 17 in North America. RIM has sought to broaden its subscriber base beyond that region by expanding in developing countries such as China, striving to compete with Apple and Schaumburg, Illinois-based Motorola Inc.

Businesses and governments worldwide rely on BlackBerrys to communicate with mobile workers. RIM had about 36 million subscribers globally at the end of its third quarter, ended Nov. 28.

Co-Chief Executive Officer Jim Balsillie said last week that the third quarter was the company’s strongest for growth outside North America. About 35 percent of subscribers are from outside the region, he said on a conference call.

Balsillie also announced an agreement with China Telecom Corp. to offer the BlackBerry in China, the world’s biggest mobile-phone market. RIM plans to sell a BlackBerry customized for that country with China Mobile Ltd.

The Dec. 17 interruption affected BlackBerry users who rely on RIM’s Internet-based service, instead of corporate servers, according to Verizon Wireless, the biggest U.S. mobile-phone carrier. RIM restored services several hours later.