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RIM plans for service fees halts stock rally

Research In Motion’s decision to scrap service fees for some users is threatening its most profitable source of revenue and bringing its three-month stock rally to a halt.

Published: Dec. 22, 2012 at 12:05 a.m. PST
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Research In Motion’s decision to scrap service fees for some users is threatening its most profitable source of revenue and bringing its three-month stock rally to a halt.

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 Thursday on a conference call. Service fees accounted for about $982 million in sales last quarter, out of a total of $2.73 billion.

Separately, Nokia said Friday that RIM agreed to make one-time and “ongoing” payments as part of a patent-licensing deal that ended all legal disputes between the companies.

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