GSM is the most secured cellular telecommunications system available today. GSM has its security methods standardized. GSM maintains end-to-end security by retaining the confidentiality of calls and anonymity of the GSM subscriber.

Temporary identification numbers are assigned to the subscriber’s number to maintain the privacy of the user. The privacy of the communication is maintained by applying encryption algorithms and frequency hopping that can be enabled using digital systems and signalling.

This chapter gives an outline of the security measures implemented for GSM subscribers.

Mobile Station Authentication
The GSM network authenticates the identity of the subscriber through the use of a challenge-response mechanism. A 128-bit Random Number (RAND) is sent to the MS. The MS computes the 32-bit Signed Response (SRES) based on the encryption of the RAND with the authentication algorithm (A3) using the individual subscriber authentication key (Ki). Upon receiving the SRES from the subscriber, the GSM network repeats the calculation to verify the identity of the subscriber.

The individual subscriber authentication key (Ki) is never transmitted over the radio channel, as it is present in the subscriber's SIM, as well as the AUC, HLR, and VLR databases. If the received SRES agrees with the calculated value, the MS has been successfully authenticated and may continue. If the values do not match, the connection is terminated and an authentication failure is indicated to the MS.

The calculation of the signed response is processed within the SIM. It provides enhanced security, as confidential subscriber information such as the IMSI or the individual subscriber authentication key (Ki) is never released from the SIM during the authentication process.

Signalling and Data Confidentiality
The SIM contains the ciphering key generating algorithm (A8) that is used to produce the 64-bit ciphering key (Kc). This key is computed by applying the same random number (RAND) used in the authentication process to ciphering key generating algorithm (A8) with the individual subscriber authentication key (Ki).

GSM provides an additional level of security by having a way to change the ciphering key, making the system more resistant to eavesdropping. The ciphering key may be changed at regular intervals as required. As in case of the authentication process, the computation of the ciphering key (Kc) takes place internally within the SIM. Therefore, sensitive information such as the individual subscriber authentication key (Ki) is never revealed by the SIM.

Encrypted voice and data communications between the MS and the network is accomplished by using the ciphering algorithm A5. Encrypted communication is initiated by a ciphering mode request command from the GSM network. Upon receipt of this command, the mobile station begins encryption and decryption of data using the ciphering algorithm (A5) and the ciphering key (Kc).

Subscriber Identity Confidentiality
To ensure subscriber identity confidentiality, the Temporary Mobile Subscriber Identity (TMSI) is used. Once the authentication and encryption procedures are done, the TMSI is sent to the mobile station. After the receipt, the mobile station responds. The TMSI is valid in the location area in which it was issued. For communications outside the location area, the Location Area Identification (LAI) is necessary in addition to the TMSI.

The motivations for security in cellular telecommunications systems are to secure conversations and signaling data from interception as well as to prevent cellular telephone fraud. With the older analog-based cellular telephone systems such as the Advanced Mobile Phone System (AMPS) and the Total Access Communication System (TACS), it is a relatively simple matter for the radio hobbyist to intercept cellular telephone conversations with a police scanner. A well-publicized case involved a potentially embarrassing cellular telephone conversation with a member of the British royal family being recorded and released to the media. Another security consideration with cellular telecommunications systems involves identification credentials such as the Electronic Serial Number (ESN), which are transmitted "in the clear" in analog systems. With more complicated equipment, it is possible to receive the ESN and use it to commit cellular telephone fraud by "cloning" another cellular phone and placing calls with it. Estimates for cellular fraud in the U.S. in 1993 are as high as $500 million. The procedure wherein the Mobile Station (MS) registers its location with the system is also vulnerable to interception and permits the subscriber’s location to be monitored even when a call is not in progress, as evidenced by the recent highly-publicized police pursuit of a famous U.S. athlete.

The security and authentication mechanisms incorporated in GSM make it the most secure mobile communication standard currently available, particularly in comparison to the analog systems described above. Part of the enhanced security of GSM is due to the fact that it is a digital system utilizing a speech coding algorithm, Gaussian Minimum Shift Keying (GMSK) digital modulation, slow frequency hopping, and Time Division Multiple Access (TDMA) time slot architecture. To intercept and reconstruct this signal would require more highly specialized and expensive equipment than a police scanner to perform the reception, synchronization, and decoding of the signal. In addition, the authentication and encryption capabilities discussed in this paper ensure the security of GSM cellular telephone conversations and subscriber identification credentials against even the determined eavesdropper.