From: azur@netcom.com (Steve Schear)
Date: Thu, 21 Nov 1996 09:37:30 -0800 (PST)
To: cypherpunks@toad.com
Subject: Re: Mass-market crypto phones
Message-ID: <v02140b04aeba4390566a@[10.0.2.15]>
MIME-Version: 1.0
Content-Type: text/plain


>A while back, Eric Blossom posted a URL for a mass-market, phone encyrption
>device (http://www.comsec.com/).  The point of this post is to posit a
>scenario based on the implications of this product.  This is speculation
>based on where I think such products should be heading.
>
>I think we need to keep a couple of goals in mind.  The first, is to get
>encrypting phones (or phone add-ons) into Wal-mart, K-mart, etc (where
>probably most Americans now buy their phones).  The prices need to be low
>enough that people will want to buy them (<$100?).  Is this technically
>feasible?  The comsec device from the above URL already demonstrates the
>needed capability.  Is the cost target possible?  My guess is soon, given
>the lowering costs and increasing capabilities of current processors.

I've worked with these products, while at Cylink, and don't think it will
be posible to reach your $100 figure for a standalone device without
manufacturing volumes of 100,000/month or so--even AT&T's attempt at a
similar device was priced considerably higher.  Given the lack of general
population interest it is very unlightly a market of this volume will
develop.  A more likely scenario is the inclusion of this technology in a
digital cordless phone, since the A/D-D/A circuits are already part of the
design--some analog units already include scrambling circuits--although
increased power consumption and therefore either power supply weight or
decreased talk and standby times could become a maketing problem.  If
you're interested go contact one of the many Asian consumer electronics
companies (see http://www.asiansources.com> tell them how many 10,000's of
units you're willing to buy and have them built for U.S. resale.

>
>The second goal needs to be to push a similar product for cell-phones.  I
>think this will be perhaps an easier sell, given the higher initial cost for
>these phones, and their reduced security.  Perhaps a home device could be
>sold with the cell-phone as a package deal, so that communications with the
>"home base" (i.e your office, home, etc) would be secure.  With the rapid
>growth in cell-phone sales, selling a package such as this might ensure a
>larger user-base of home devices.

Again inclusion in a digital phone is easiest and best, but then again its
already digital and if GSM probably encrypted over the air. Cylink's
briefcase-sized SecureCell was never a success (too heavy and expensive).
Maintaining a >9600bps stable modem link via analog cellular still isn't
easy (even when stationary), but has improved with the availability of
specialized modems.  However, you're right that many more users will be
willing to pay and could be a winning combo.  I'm not sure interconnection
of such a device with most miniature cell phones would be a slam dunk.

>
>Given that these goals are met, I think widespread use of crypto over phone
>lines would become almost inevitable.  However, the fun part would be the
>introduction of such products.  The FUD coming from police, the government,
>etc. would be amazing to behold.
>
>        Clay
>
>
>
>*******************************************************
>Clay Olbon                          olbon@ix.netcom.com
>engineer, programmer, statistitian, etc.
>**********************************************tanstaafl