Trading in the controversial BlackBerry device has plummeted by more than 90 per cent in Abu Dhabi since the UAE’s telecommunications regulator announced plans to ban its services, dealers said on Monday.

After dominating mobile phone trading in the capital for more than a year, the BlackBerry is now one of the least demanded handsets in the market although its prices have remained intact, they said.

“We used to sell more than 50 BlackBerry handsets every week before the announcement to ban its services. Over the past week since the announcement was made, we have sold only five devices,” said Mohammed Al Gaddah, owner of Alasala mobile phone shop on Defence Road, the main mobile phone shopping centre and the largest used phone market in the region.

“Considering the circumstances, I think selling five handsets is good. I believe those who bought them intend to take them abroad. Demand for this device is gradually heading to a standstill unless something positive happens. We can sell more if we cut prices but we cannot because this means big losses,” he said.

But that was not the case with supply. The more than 150 mobile phone shops on Defence Road are now flooded with BlackBerry users seeking to sell their handsets at much cheaper prices to replace them with other phones.

While some dealers said they had stopped buying these handsets, others are offering much lower prices for a second hand device.

“Take for example the BlackBerry Bold 9700. A brand new handset retails for around Dh1,800 while a second hand one was bought for just above Dh1,000. We are now buying them for under Dh500 and many owners are selling,” said Imad Hariri, manager of the Jawal mobile phone shop.

The decision by the Telecommunications Regulatory Authority (TRA) to suspend BlackBerry’s messenger and other services from October 11 has triggered fears among major mobile phone dealers in the capital that they could suffer heavy losses unless the decision is retracted under a possible agreement between the UAE service providers and the Canada-based device maker, Research in Motion.

Traders said more than 5,000 brand new BlackBerry devices are lying idle at mobile phone shops on Defence Road while hundreds of second hand units are also stacked on their shelves awaiting possible buyers.

Besides the devices, losses could result from a sharp slowdown in the sale of BlackBerry accessories, including covers, chargers and batteries.

“We are already losing,” said Maher Rushdi, accessories salesman at the Golden Crown mobile phone shop. “I used to sell more than 50 covers and other BlackBerry accessories every day. Now I sell just one or two… this is a big loss because the value of supplies we have here exceeds Dh100,000.”

Technicians at those shops are also complaining that they have been hit by TRA’s decision.

“I used to do a lot of services for the BlackBerry users, including updating, software and unlocking. It was a very good business for all shops, but I haven’t touched one device since that decision,” said Haitham Kareem, a mobile phone technician at the Gold Crown shop.

While mobile phone dealers have no choice but to begin counting their losses or pray that an agreement is reached with the BlackBerry manufacturer, etisalat and du have already taken action to offset their loss by announcing a package of alternatives to the existing BlackBerry services

According to Moody’s Investor Service, the decision by etisalat and du to give customers a deadline of more than two months before banning BlackBerry services will allow them to minimise losses.

“In Moody's opinion, the period until the ban on BlackBerry comes into effect will allow etisalat and du to lure customers into making the switch, thereby minimising the financial impact on these two operators from the potential loss of high-usage customers. Moody's understands that BlackBerry services will be banned altogether within UAE borders, including international roaming,” it said.

Etisalat and du, the only service providers in the UAE, have more than 500,000 BlackBerry subscribers, who are kept guessing whether the two companies will retract their decision or push ahead with suspension of the service.

“I am optimistic,” said a BlackBerry user at a mobile phone shop on Defence Road. “This is because I believe etisalat and du give consideration to the interests of their customers and secondly the UAE has always tackled any sudden problems wisely without infringing on its dignity.”

“I am pessimistic,” said another UAE national. “This is because the UAE never compromises on its rights and it seems the Canadian company does not care for the interests of the countries in this region.”

“I don’t know,” said a third user. “This is because I don’t want to judge events in advance… but let’s hope we have the service permanently.”