Encrypted mobile phone hits market

From...

By Rick Perera

(IDG) -- A Specially modified mobile phone that encrypts conversations is now available worldwide, offering business executives, government officials, and law enforcement officers the ability to talk via a secure connection even while on the move.

The TopSec GSM phone is based on Siemens' popular S35i GSM (Global System for Mobile Communications) handset, modified with a so-called "crypto-chip," said Stefan Böttinger, said a spokesman for German communications security company Rohde & Schwarz. The device uses a combination of asymmetric 1,024-bit and symmetric 128-bit encryption for a high level of security, he said.

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After dialing a number, a user simply presses a button labeled "crypto" to establish a secure connection. The other party to the call must also be using a TopSec GSM phone or a similarly equipped fixed-line device, such as Rohde & Schwarz's ELCRODAT 6-2 ISDN phone.

Rohde & Schwarz is marketing the devices after acquiring the hardware cryptology segment of Siemens' Information & Communication Mobile division on May 1.

Like the ordinary S35i, the TopSec GSM is a dual-band phone that operates on both the 900MHz and 1,800MHz frequencies, which makes it functional anywhere GSM service is available, Bšttinger said. The company is marketing the phone worldwide at a list price of $2,742.

Rohde & Schwarz is targeting middle- and higher-level management and government users as potential customers, Bšttinger said.

"We plan to sell around 20,000 to 30,000 pieces worldwide, total. That's what we expect from the market," Böttinger said. The German Bundeswehr (federal army) recently bought several thousand ELCRODAT phones, he added.

One analyst was skeptical about the demand for encrypted mobile phones.

"I'm not really sure I understand why for voice calls you would need additional encryption," said Michelle de Lussanet, an analyst with Forrester Research in Amsterdam, pointing out that the GSM standard includes a built-in encryption protocol. Furthermore, she added, "There are requirements on network operators that they have to make it possible for police to listen in on phone calls" when there is suspicion of criminal activity.

Indeed, Böttinger said, there are legal restrictions on using encrypted phones in some countries.

"With the mobile phone we deliver a list of those countries, for customers to check whether they can use it or not," he said. Böttinger could not say how many or which countries are included in the list, however.