When your phone connects to the network, the network knows the phone belongs to you, marrying your account with the network for billing purposes. Essentially, what this means is your phone's SIM card has a unique encryption key and your phone's provider – Vodafone, Telstra or Optus for example – has the opposing encryption key. Gemalto, a Dutch company provides a large amount of the worlds' encryption keys for SIM cards and cellular phone networks.
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