India tells Google, Skype to set up local servers

The government has already told the maker of the BlackBerry smartphone, Research In Motion (RIM), that it must set up a server in India to allow security forces to intercept the phone's encrypted messaging system.

He added that notices were being dispatched to Google, which uses powerful encryption technology for its Gmail email service, and Skype, the internet phone provider.

Server in India

"All people who operate communication services in India should have a server in India," Mr Pillai told a news conference. "This applies to all."

The government's statements came two days after it gave BlackBerry a two-month window to provide a way to read the smartphone's corporate email and messenger chatting services, or face a shutdown of the core functions of the phone.

Finnish mobile phone giant Nokia, a key BlackBerry rival, has already acceded to the government's demands, announcing this week it would set up a server in India by early November to give security forces access to data carried by its smartphones.

Home ministry officials say Skype, which uses voice over IP technology to send calls over the internet, poses a difficulty for the domestic intelligence services.

BlackBerry's reprieve came after the government said the smartphone's Canadian maker had made proposals to give security forces "lawful access" to messages carried on the handsets.

BlackBerry has become a global market leader in the smartphone sector thanks to its heavy encryption, and analysts say any compromise with the Indian government could damage its popularity with its high-profile clientele.

The blackout of BlackBerry's core features

The blackout of BlackBerry's core features would have disrupted communications for the two events, the newspaper said, adding there would be more talks with RIM before Mr Obama's visit.