UK start-up finds way to encrypt mobile phone calls

A British start-up that has developed technology that prevents people snooping on calls from fixed-line and mobile phones even if made from abroad is looking to raise several million pounds as it closes in on key deals with multinational companies and the British government.

Cellcrypt, founded only three years ago, is run by Claes Bergstedt, a former sales head of the British electronic organiser firm Psion. It has been operating in "stealth mode" while it perfects its technology and gains security clearance from the UK and US authorities. Having raised initial financing from Porton Capital, the company, which has only a dozen staff in London and Woking, Surrey, is in talks with investors about raising more cash to launch its sales and marketing efforts.

The security of phone calls has become a major concern not just for governments but also for multinational companies whose staff travel the world. Traditionally, firms that want to secure their communications have bought new hardware, such as the secure mobile devices sold by the US technology giant General Dynamics. But these devices can be expensive.

Other companies have developed ways of encrypting voice calls so they cannot be intercepted. The US-based Koolspan has developed an encryption device that can be plugged into a mobile phone's memory card slot. The company last month raised more than $7m (£3.5m) from investors.

Cellcrypt's technology, however, encrypts calls that use the cheaper voice over internet protocol (VoIP) technology. VoIP uses a mobile phone data connection to set up a call over the internet, rather than utilising the traditional voice part of the mobile phone signal. Mobile phones can also access wi-fi networks that make use of public wireless internet access hot spots around the world to make unlimited international calls far more cheaply.

Cellcrypt allows users to make secure VoIP calls by installing software on their mobile phone. Bergstedt said people were increasingly worried about the security of telephone calls. "If you access your bank online it's safe but if you use your phone it seems to be fair game," he said. "Why should people treat the call differently?"

source : http://www.guardian.co.uk/