India’s 400 000 Blackberry users salad days of using push email to plot to overthrow the government are over. Indian authorities are demanding RIM either allow access to their customers encrypted communications or lower the encryption to 40-bit.

Following similar governmental interference in the US, ISPs are raising concerns that if RIM complies, all encrypted wireless data will be open to spying, making ecommerce virtually impossible.

Will RIM hold their ground? Will other phone users in India suddenly flock to Blackberry devices? We’ll keep you posted on the outcome of the meeting.