Mobile networks remain a prime target for cyberattacks, exemplified by the recent efforts of the Chinese hacking group Salt Typhoon, which has been consistently targeting various carriers. In response to ongoing security concerns, the mobile service startup Cape is offering a fresh solution by launching a service that prioritises user privacy. Uniquely, Cape does not collect user data, not even through its website, and is unveiling significant developments in its approach.
Based in Washington, D.C., Cape was founded by a former head of Palantir’s national security sector and an ex-U.S. Army special forces member. The company has just announced an open beta for its mobile virtual network operator (MVNO) service at a subscription rate of $99 per month. This new offering comes alongside a strategic partnership with Proton, known for its encrypted email and VPN services, and follows a successful funding round, raising $30 million from equity and debt sources. This sum enhances its Series B funding to a total of $55 million.
While Cape is not revealing its valuation, the timing of this funding is worth noting, as increased attention is being channelled towards startups involved in military, defence, and security during a period of shifting geopolitics. Cape’s progress is indicative of broader trends impacting consumer-level technology amidst higher-level international dynamics.
Not all of Cape’s strategies are aimed at regular consumers. The company previously garnered attention with a $1,500 device called the Obscura, tailored for users in sensitive situations, including military personnel. The recent move to open consumer services reflects growing interest from those who wish to reclaim their digital privacy without investing heavily in specialised hardware.
Cape’s service guarantees no data tracking or selling, offering unlimited voice, text, and data services (with encrypted voicemail), although voice-over-Wi-Fi feature is still under development. To safeguard against emerging threats such as SIM swapping and signalling attacks, Cape employs advanced cryptographic measures.
The planned general availability of the mobile plan is set for later this year. Currently, fewer than 1,000 individuals utilise the closed beta, alongside a limited number of Obscura phone users. Cape’s services operate primarily on UScellular’s infrastructure while the company plans to expand roaming services internationally and introduce MVNO plans in new markets.
Europe, in particular, has demonstrated a strong appetite for privacy-centric services, creating a significant opportunity for Cape. To bolster its appeal, Cape is partnering with like-minded organisations, beginning with Proton, allowing new subscribers to access discounted premium services that enhance their privacy options.
Overall, Cape is banking on a growing consumer demand for privacy-focused telecommunications, capitalising on a landscape wary of traditional tech giants.
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