If you think that your phone calls are safe from third parties, you may want to think again. Members from the hacking group called The Chaos Computer Club plan to release a code that will supposedly give hackers complete access to your private phone calls. They claim that it can be done with a simple laptop and an antenna.
They also claim that various government criminal organizations already use this technique to break the encryption that protects your calls. GSM uses algorithms for key generation, authentication, and to encrypt its connections. The Chaos Computer Club has found a way to crack the encryption used on GSM phones that can be used to decode conversations and any data sent to or from your phone.
Mobile carriers are working towards a stronger encyrption algorithm for 3G wireless phones, in the meantime programs like Cellcrypt offers encryption beyond what your cell phone carrier can offer.