Privacy-focused MVNO Cape launches nationwide with $99/month plan backed by a16z

Cape, a privacy-focused mobile virtual network operator (MVNO) that raised $61 million from Andreessen Horowitz and other investors, has officially launched nationwide service in the US after a limited beta that began in March 2025. The service starts at $99/month - nearly triple the average US wireless bill - positioning itself as a premium option for security-conscious users.

The Cape service runs on major carrier infrastructure (likely Verizon or AT&T, though unspecified) while implementing several privacy enhancements:

• End-to-end encrypted voice and video calls between Cape users
• Encrypted SMS/text messaging
• Metadata protection that obscures call logs and location data
• Optional anonymous sign-up using cryptocurrency payments

Technical documents indicate Cape uses a modified Android stack with hardened kernel configurations and its own implementations of Signal Protocol for encrypted communications. The company claims its network architecture prevents even Cape employees from accessing user communications metadata.

This launch comes as MVNOs capture 15.4% of US wireless subscribers, though most compete on price rather than privacy features. Cape's approach mirrors services like Silent Phone ($99/month) and MySudo ($15/month per line), but with deeper network-level integration.

Key limitations:

1. Coverage depends on underlying carrier (not disclosed)
2. No 5G support in initial rollout
3. High price limits mass adoption
4. Requires Cape-specific Android app for full features

While the technical implementation appears robust, Cape faces significant go-to-market challenges. The $99 price tag puts it beyond reach for most consumers, and its privacy claims remain unverified by third-party audits. The service also doesn't address the fundamental issue that cellular networks inherently expose metadata to carriers.

For enterprises and high-risk users, Cape could provide meaningful protections against bulk surveillance. But for mainstream adoption, the company will need to demonstrate tangible privacy benefits that justify the substantial cost premium over standard MVNO offerings.

The launch reflects growing investor interest in privacy infrastructure, with a16z's participation suggesting belief in enterprise/SMB demand. However, Cape's success will depend on whether organizations and individuals value these protections enough to pay a 3x premium over standard wireless service.