In order to counter security threats, the Pakistan Telecommunication Authority (PTA) has asked the country’s mobile network operators to ban BlackBerry Limited’s BBRY enterprise server and its Internet and messaging services by Dec 1, 2015.

Repeated terror attacks in the country have compelled the government to monitor all domestic phone lines and Internet traffic. BlackBerry is popular for its secure network and messaging service through which data is converted into complex codes which are difficult to crack. Even the Pakistani Inter-Services Intelligence (ISI) bureau finds it hard to decode this information.

Moreover, BlackBerry servers which manage and store all messaging data, is located outside Pakistan, making it a harder task for the ISI group. Thus, putting a ban on the service may help put a check on terrorist activities in the nation.

The Canadian smartphone maker enjoys a strong presence across the emerging nations in Asia. Thus, we believe that the restriction imposed by the Pakistan government is a major blow to BlackBerry’s business in the continent.

BlackBerry had faced similar bans in India, the United Arab Emirates (UAE), Saudi Arabia and Indonesia owing to security reasons. However, the services of the company were resumed under more limitations.

Unlike its deteriorating handset sales, BlackBerry’s software business witnessed a massive 150% year-over-year growth in revenues in the first quarter of fiscal 2016. Thus, to maintain this momentum as well as to offset losses at the company’s handset business, BlackBerry needs to tighten its business policies.

BlackBerry currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the telecom space include RigNet, Inc. RNET, Orange ORAN and NTT DOCOMO, Inc. DCM. NTT DOCOMO sports a Zacks Rank #1 (Strong Buy) while the other two carry a Zacks Rank #2 (Buy).

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