In an era where personal data is often treated as a commodity by major telecommunications companies, a new mobile carrier is challenging the status quo. Phreeli, launched on December 4, 2025, is positioning itself as a "privacy-by-design" wireless service that promises not to collect, sell, or share customer data—a stark contrast to the extensive personal information typically required by traditional carriers.

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When signing up for most mobile services, customers are accustomed to providing a comprehensive range of personal details, including full name, address, date of birth, and financial information. Phreeli, however, has simplified this process to require only a ZIP code, a chosen username, and a payment method. Customers can opt to pay with a credit card or, for enhanced privacy, using cryptocurrency.

The startup operates as a Mobile Virtual Network Operator (MVNO), leveraging T-Mobile's infrastructure rather than building its own network towers. This business model allows Phreeli to focus on its core mission of privacy without the massive capital investment required for physical infrastructure.

"We are trying to help people feel more comfortable living their normal lives, where they're not doing anything wrong, and not feel watched and exploited by giant surveillance and data mining operations," Nicholas Merrill, Phreeli's founder, told Wired.

The "Double Blind Armadillo" System

Phreeli's approach to privacy is technically innovative, utilizing a system the company calls the "double blind armadillo." This zero-knowledge model employs cryptographic tokens to verify service status without recording or linking customers to their mobile plans, effectively anonymizing service events.

"This zero-knowledge model uses cryptographic tokens to verify the status of the service without recording or linking customers to mobile carrier plans, which Phreeli says helps to anonymize service events and stops them from being trackable."

The system separates customer billing data from call histories, texts, and data usage while still enabling payment verification. Phreeli states it "will only share data with third parties as is necessary to provide your service, or if we are required to do so by law," as outlined in its privacy policy.

A Founder's Mission

Merrill's motivation for creating Phreeli stems from a personal battle with government surveillance. In 2004, while running an ISP, he challenged an FBI-ordered National Security Letter (NSL) under the US Patriot Act after the government demanded information on one of his users. His refusal, coupled with a gag order, led to a legal battle spanning over a decade. Eventually, the pressure forced Merrill to close his ISP, but the experience ignited his determination to advocate for privacy differently.

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"Image: Maria Diaz / ZDNet"

This history explains why Merrill is committed to ensuring that even if government agencies demand customer information, there's very little beyond a ZIP code that Phreeli can share.

Business Model and Practical Considerations

Without the need for traditional service contracts—which would require customer identification—Phreeli offers prepaid, month-to-month plans ranging from $25 to $80, depending on data needs. This approach eliminates credit checks and long-term commitments, appealing to privacy-conscious consumers.

While the concept of minimal-identity phone services may evoke associations with "burner phones" often used for illicit activities, Phreeli explicitly targets law-abiding individuals seeking privacy. The company states it will actively block or severely limit services detected as originating from robocallers or scammers.

Industry Implications

Phreeli's emergence comes at a time of increasing consumer awareness about data privacy and growing scrutiny of telecommunications companies' data practices. By offering a viable alternative that prioritizes privacy by design rather than as an afterthought, Phreeli may pressure established carriers to reconsider their data collection policies.

The service also raises important questions about the future of telecommunications privacy. If successful, Phreeli could demonstrate a sustainable business model that prioritizes user privacy over data monetization—a concept that could influence other industries beyond mobile services.

Of course, significant challenges remain. The startup will need to attract a substantial customer base to remain viable, and its unconventional approach may face regulatory hurdles or resistance from established players. Additionally, the effectiveness of its privacy protections will be tested as the service scales.

As digital privacy concerns continue to mount, Phreeli represents an intriguing experiment in reimagining telecommunications services with privacy at their core. Whether it becomes a mainstream alternative or remains a niche offering, its approach is likely to influence the ongoing conversation about data rights in the digital age.