This is from the BES Security Technical Overview [1 p.30] [pdf]:
Before the BlackBerry device sends a message, it
compresses and encrypts the message using the device
transport key. When the BlackBerry Enterprise Server
receives a message from the BlackBerry device, the
BlackBerry Dispatcher decrypts the message using the
device transport key, and then decompresses the message.
[1] http://docs.blackberry.com/en/admin/deliverables/16650/Black...