In a bold move to combat pervasive surveillance in the telecommunications industry, a new anonymous phone service called Phreeli has officially launched in the United States. Founded by privacy advocate Nicholas Merrill, the service allows users to sign up for a mobile phone number using nothing more than a ZIP code, effectively keeping their identities hidden from the company itself.
This innovative approach has garnered attention for its use of cutting-edge privacy technologies, including zero-knowledge proofs (ZKPs), developed with consultation from Zooko Wilcox, the co-founder of the privacy-oriented cryptocurrency Zcash.
How Phreeli Works: Minimal Data, Maximum Privacy
Phreeli operates as a Mobile Virtual Network Operator (MVNO), leveraging T-Mobile's infrastructure for cellular coverage while maintaining full control over user contracts and data handling. This setup enables the company to disconnect personally identifiable information from users' phone activities, offering a level of anonymity that stands in stark contrast to traditional carriers.
📝 Registration & Payment
Minimal Data: Users provide only a ZIP code during registration, retained strictly for tax compliance. No names, addresses, or other personal details are required upfront.
Anonymous Payment: The service supports payments through privacy-focused cryptocurrencies like Zcash (ZEC) or Monero (XMR), allowing users to prepay without linking traditional financial information to their accounts.
Sliding Scale Privacy: Users can opt to provide an email for account recovery or a mailing address to receive a physical SIM card, though this information is deleted immediately after shipping. Digital eSIMs are also available.
🛡️ Preventing Abuse
To prevent abuse like spamming or robocalling, Phreeli implements volume limits and reserves the right to ban users exhibiting suspicious behavior. Crucially, the company collects virtually no data that could be handed over to authorities, making it far less susceptible to subpoenas compared to mainstream providers.
The Role of Zero-Knowledge Proofs and Zooko Wilcox
A key technical innovation behind Phreeli is its "Double-Blind Armadillo" encryption system, which relies on ZKPs. This technology allows Phreeli to verify that a user's bill has been paid without storing or accessing any details about the payment method or the user's identity. ZKPs enable mathematical confirmation of facts (like proof of payment) while keeping the underlying information encrypted and private.
Zooko Wilcox played a pivotal role in shaping this system, advising on the use of "zero-knowledge access passes" which inspired Double-Blind Armadillo.
Wilcox, renowned for his work on Zcash, criticized traditional phone companies, saying, "Phone companies are rapacious. They basically sell everything about you... to more or less anybody who will pay." He noted that Phreeli is a step toward making true privacy accessible in everyday communication.
Founder's Vision and Limitations
Phreeli was founded by Nicholas Merrill, a long-time privacy stalwart who previously fought an FBI National Security Letter and ran the Calyx Institute. Backed by $5 million in funding, Merrill aims to make privacy the default for mobile users.
Merrill emphasizes the service's intent: "We're trying to help people feel more comfortable living their normal lives... and not feel watched and exploited by giant surveillance and data mining operations."
🚧 Limitations and Criticisms
The service requires prepayment as it cannot track users who might owe money.
True end-to-end privacy depends on the user's device and apps; operating systems like iOS or Android, and third-party applications, may still collect data independently.
Phreeli does not own the physical cell towers and therefore cannot prevent all forms of external surveillance.
Despite these limits, Phreeli represents a significant step toward "rational privacy" in telecommunications, extending concepts from blockchain and cryptography into everyday services.
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