French Contractors Jump Into Market for Secure Communications

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In the Paris area, two security contractors are jumping into a burgeoning market for secure mobile phones and encrypted communications as revelations of widespread US government surveillance accelerate a security race among businesses, government agencies and hackers.

This month, Bull SA -- a French maker of cybersecurity and intelligence gear -- is starting to ship a new €2,000 ($2,760) smartphone for businesses called the Hoox m2. Based on Google's Android software, it has been re-engineered to resist hacking and encrypt calls. "Unnecessary to speak in 'coded language,'" brags a marketing brochure. Just a few miles away, partly state-owned defense contractor Thales SA is selling an enterprise-software system dubbed Teopad. Priced in the "hundreds of euros" per license, the software will split any Android phone or tablet "in two," according to Thales, with one side for personal use and the other encrypted for sensitive business applications -- and secure phone calls. The dueling French companies are part of a growing niche -- spanning tiny firms and defense giants -- that is banking on growing demand for high-end encryption amid rising threats from organized hackers and growing fears of ubiquitous surveillance.

[Jan 1]


French Contractors Jump Into Market for Secure Communications