This price is achieved mainly thanks to the use of hardware components of the older generation. Privacy Phone is essentially a slightly modified Samsung Galaxy S2 device with the addition of software to preserve privacy. All online calls and messages are encrypted, all data passes through the VPN network that serves to conceal the true identity of the user.

However, we can say that the user can not count on complete privacy using VPN and weak 128-bit encryption used by the device, but users can still get a certain amount of anonymity for smaller price. The device can be paid via Bitcoin virtual currency to ensure the privacy of customers.

[Ed the real question is, will the NSA leave this one alone or will they simply move to hacks and exploits found inside the phones at the hardware and software level. You know they will be buying one specifically for the putpose of finding out methods of getteing around any security that FreedomPop is putting in. The concent of privacy protection will become the same cat and mouse game that malware is with the NSA playing the part of "bad guy"... It will be very interesting to see how long this new type of phone will last under the full pressure of the NSA...]

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