UAE SPYWARE GOES PUBLIC

UNCLAS ABU DHABI 000789

SENSITIVE
SIPDIS

DEPARTMENT FOR NEA/ARP, DRL AND EEB/CIP/BA (DOW)

E.O. 12958: N/A
TAGS: ECPS KPAO PGOV AE
SUBJECT: UAE SPYWARE GOES PUBLIC


1. (SBU) SUMMARY: Widespread local and international media coverage
of UAE telecom giant Etisalat's reported attempt to install spyware
developed by a U.S. firm on local BlackBerries has dominated a
normally quiet summer news cycle. Etisalat (Emirates
Telecommunications Corporation) denied that the "performance
enhancing patch" was spyware, but BlackBerry developer RIM refuted
the claim and offered instructions on how to remove it. The public
uproar suggests Etisalat may lose some BlackBerry customers, but its
dominant market position is unlikely to change. END SUMMARY.


2. (SBU) On July 11, some EmbOffs received Etisalat text messages on
their official BlackBerries stating "Etisalat is always keen to
provide you with the best BlackBerry service and ultimate
experience, for that we will be sending you a performance
enhancement patch that you need to install on your device." While
EmbOffs received no follow up messages, local English-language media
began reporting that some Etisalat BlackBerry customers were
experiencing battery drainage after installing a performance
enhancing patch. Independent Dubai-based Gulf News was particularly
critical, even semi-official Abu Dhabi-based The National carried
significant coverage, and similar criticism appeared in the Arabic
language press.


3. (SBU) On July 15, Etisalat released a statement claiming that a
BlackBerry settings conflict resulted in "a slight technical
default." However, on July 17, Research in Motion (RIM),the
Canadian developer of BlackBerry, published its own statement that
Etisalat "appears to have distributed a telecommunications
surveillance application that was designed and developed by (U.S.
firm) SS8." The statement also provides instructions on how to
detect and remove third party applications. Subsequent press
reporting suggested Etisalat was planning to meet with RIM, but
there has been no public information that meeting has occurred.


4. (SBU) While there has been little speculation about why Etisalat
would be eavesdropping, the firm's reputation has suffered. An
online poll of Etisalat BlackBerry users revealed 36 percent of
respondents planned to cancel their Etisalat service as a result of
the spyware fiasco and switch to rival provider Emirates Integrated
Telecommunication Company (du). However, Etisalat, which is 60
percent owned by the UAE government, is likely to retain its
significant market share. Its stock price has risen marginally
along with a general rise in local markets.


5. (SBU) COMMENT: The critical press coverage is particularly
remarkable as Etisalat is majority owned by the UAEG, the dominant
telecommunications company and a significant source of revenue for
the federal government. That criticism appeared in Arabic-language
media, not just English media favored by expats, represents crossing
another information firebreak. However, few have publically
speculated why or at whose bequest Etisalat would be installing
spyware or what would be done with the information gathered
(reported in other channels); it appears some journalistic red lines
still exist. END COMMENT.


6. (SBU) NOTE: IRM Washington has confirmed that Mission BlackBerry
users are protected from such spyware. END NOTE.
GREENE