[psranga]

The Indian (and other govts) asked for the server to be placed in their country because otherwise RIM will invoke the technicality that that don't have to honor Indian govt's snoop requests since the server isn't located within Indian jurisdiction.

Complying with foreign snoop requests for a server located in the US may (IANAL) make it possible for somebody to sue RIM in US courts for complying with a request that didn't come from US law enforcement. So RIM is highly unlikely to honor snoop requests for servers outside the country making the demand. Hence the demand to place servers within countries interested in snooping on their citizens.