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Chronicles

The story behind the story

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Silent Circle takes on Skype and Viber with global, encrypted phone calls

Secure comms firm promises ‘beautiful disruption’ with its new Silent Phone calling plans, but will businesses agree?  —  Silent Circle's Silent Phone service.  —  Secure communications firm Silent Circle is taking …

Guardian Tom Brewster

Context & Ripple Effects

This launch is the software half of Silent Circle's two-front push into privacy communications. In January 2014 it partnered with Spain's Geeksphone to build the pro-privacy Android Blackphone handset, and that device pulled in a $30M funding round by May on the strength of its demand. With Silent Phone calling plans, the company now sells the network itself — encrypted voice billed like a carrier plan rather than bundled into a phone.

The timing puts pressure on incumbents at a sensitive moment: weeks earlier, Skype confirmed it would retire recent Windows and Mac desktop clients and force upgrades, and it had just made group video calling free across Windows, Mac, and Xbox One in April — moves that prioritize control of its own platform while leaving encryption out of the pitch.

First-order effects

  • Businesses evaluating Skype or Viber gain a third option priced as a global calling plan but differentiated purely on end-to-end encryption — Silent Circle is asking corporate buyers to pay for privacy rather than accept it free without it.
  • Skype and Viber now face an explicit privacy-first challenger at the moment Skype is forcing its installed base through mandatory client upgrades, a window where switching friction is unusually visible.

Second-order effects

  • Incumbents whose model depends on controlling the client and monetizing scale will be pushed to answer the security question — either by adding stronger encryption claims or by leaning harder on features (group video, cross-device reach) that a small rival cannot match.
  • Telecom-style flat-rate global calling undercuts traditional international long-distance pricing, pulling carriers' roaming and IDD revenue into the same fight as VoIP incumbents.

Third-order effects

  • If buyers treat encryption as a purchasing criterion rather than a specialist feature, secure communications stops being a niche product category and becomes table stakes — forcing every mass-market messaging service to compete on trust architecture, not just price.
  • A privacy-focused hardware-plus-network stack like Blackphone plus Silent Phone points toward vertical integration as the credible way to sell security, since each layer must vouch for the other.

The trend: Consumer communications is splitting into a privacy-priced tier alongside free ad-supported VoIP, with post-2013 demand for secure calling turning encryption from activist tooling into a commercial differentiator.