Indian government: Local servers from RIM, Google and Skype please

The Indian government has thrown down the gauntlet and is now asking companies such as Google (NASDAQ: GOOG) and Skype to install local servers. This is purportedly to enable government officials to more easily tap into the flow of encrypted communications and emails that come across the networks. Home Secretary G.K. Pillai has confirmed that notices have been sent to Google and Skype pertaining to this matter.

Pillai was quoted as saying, "People who operate communication services in India should (install a) server in India as well as make available access to law enforcement agencies." Other online or hosted services mentioned were Nokia and MSN Hotmail, though it wasn't clear if the government has started negotiation on these fronts yet.

For now, RIM (NASDAQ: RIMM) faces increasing pressures to comply, though it is understood that the company obtained an extension by providing some form of monitoring tools. RIM apparently maintains that the physical location of its server has no bearing on a government's ability to crack encrypted data.

For more on this story:
- check out this article at CNET News
- check out this article at Mobiledia

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