A new Israeli-made Internet telephone that scrambles messages before they are sent down the line is attracting spy agencies and military clients in Israel and abroad, the phone's manufacturer told The Jerusalem Post Wednesday.

Petah Tikva-based Tikal Networks developed its Cryptone phone following a request by the Italian Navy for a secure telecommunications line, the company's CEO, Alex Argov, said.

"We're now in talks with the Prime Minister's Office in Israel and a range of security agencies here and around the world," he said. Fears of corporate spying have also led American companies to express interest in the phone, he added.

Unlike other scrambling devices, the Cryptone sends coded Internet protocol (VOIP) technology, Argov said.

"What we do, in essence, is create a black hole through Internet communications and send the voice conversation through that tunnel," he said. "The tunnel cannot be seen."

Encrypted conference calls, voice-mail and videos are tangible solutions for those who fear that someone hostile could be eavesdropping on their conversation, Argov said.

"Cryptone is part of a secure switchboard system and messaging system," he said.

A second device created by Tikal can turn any cellphone conversation into a ciphered exchange, including SMS messages, Argov said, by installing an encoding bluetooth application on the cellphone.

"In principle, any cellphone with bluetooth can become a secure line," he said.

According to a company press release, the new technology also has terrorists in mind when it comes to preventing unwanted listeners. In 2006, Hizbullah claimed its members had managed to crack IDF radio signals using Iranian technology. According to media reports, Hizbullah established teams to monitor constantly changing IDF frequencies.