RIM averts Saudi Arabia's BlackBerry messaging ban, negotiates surrender (update: 48-hour ultimatum)

It took two long years for India to (allegedly) tap BlackBerry traffic, but Saudi Arabia may not have to wait nearly as long; the Wall Street Journal reports that RIM has all but agreed to set up a local server in the country. While we've no details yet on what the deal entails, an unnamed Saudi telecom official said negotiations are already in the final stages. Sorry, RIM, but it looks like Saudi Arabia called your bluff. We imagine the company will deny any potential for government snooping in short order... and both Indonesia and the United Arab Emirates will start planning their own attempts to wrest away control. We'll let you know where this house of cards falls.

Update: Saudi Arabia has reportedly given its three national cellular carriers 48 hours to try out proposed solutions that "meet the regulatory demands" of the country, else the BlackBerry messaging ban will take effect as originally planned.