This IT item will just prevent sending using non BES service but not to receive as hdawg said. To prevent them from receiving it on their device you'd need either to setup firewall policy to block incoming BIS msg( only 4.2 OS and higher) or call carrier and disable BIS on their end.
Allow other message services: False will NOT prevent users to setup BIS using OWA. In order to block that you'd need to block range of BIS IP addresses on your firewall/IIS not to accept connections from these IP addresses. See RIM's KB has these ranges listed.
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