UPDATE 1-India says RIM to resolve BlackBerry issue in 2 mths

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KUALA LUMPUR, May 20 (Reuters) - Research in Motion (RIM) (RIM.TO) (RIMM.O) is expected to resolve in two months Indian security concerns about its BlackBerry wireless e-mail device, Indian Minister for Communications and Information Technology Andimuthu Raja said on Tuesday.

The minister also said India would announce its policy on third-generation mobile (3G) network services in two months.

"Several meetings were held between the government and RIM. RIM has assured us within two months they will give a technological solution for the questions mooted from the security point of view," Raja said. Security officials had raised concerns that e-mails sent via BlackBerry devices could not be traced or intercepted.

"They will come and demonstrate what solutions they have. If accepted, we will go ahead," he said on the sidelines of a tech conference in the Malaysian capital.

Raja said just last week that Waterloo, Ontario-based RIM had expected to resolve the matter within a month, but he did not elaborate on the possible change in schedule.

The government had said last week it was considering whether or not to allow foreign companies to bid at auctions for licences for 3G services in consultation.

The telecoms regulator said last month the auctions should be restricted to existing telecoms service licence holders. (Reporting by Jennifer Tan; Editing by Ramthan Hussain)