Signal’s president reveals the cost of running the privacy-preserving platform—not just to drum up donations, but to call out the for-profit surveillance business models it competes against.

The encrypted messaging and calling app Signal has become a one-of-a-kind phenomenon in the tech world: It has grown from the preferred encrypted messenger for the paranoid privacy elite into a legitimately mainstream service with hundreds of millions of installs worldwide. And it has done this entirely as a nonprofit effort, with no venture capital or monetization model, all while holding its own against the best-funded Silicon Valley competitors in the world, like WhatsApp, Facebook Messenger, Gmail, and iMessage.

Today, Signal is revealing something about what it takes to pull that off—and it’s not cheap. For the first time, the Signal Foundation that runs the app has published a full breakdown of Signal’s operating costs: around $40 million this year, projected to hit $50 million by 2025.

Signal’s president, Meredith Whittaker, says her decision to publish the detailed cost numbers in a blog post for the first time—going well beyond the IRS disclosures legally required of nonprofits—was more than just as a frank appeal for year-end donations. By revealing the price of operating a modern communications service, she says, she wanted to call attention to how competitors pay these same expenses: either by profiting directly from monetizing users’ data or, she argues, by locking users into networks that very often operate with that same corporate surveillance business model.

“By being honest about these costs ourselves, we believe that helps provide a view of the engine of the tech industry, the surveillance business model, that is not always apparent to people,” Whittaker tells WIRED. Running a service like Signal—or WhatsApp or Gmail or Telegram—is, she says, “surprisingly expensive. You may not know that, and there’s a good reason you don’t know that, and it’s because it’s not something that companies who pay those expenses via surveillance want you to know.”

Signal pays $14 million a year in infrastructure costs, for instance, including the price of servers, bandwidth, and storage. It uses about 20 petabytes per year of bandwidth, or 20 million gigabytes, to enable voice and video calling alone, which comes to $1.7 million a year. The biggest chunk of those infrastructure costs, fully $6 million annually, goes to telecom firms to pay for the SMS text messages Signal uses to send registration codes to verify new Signal accounts’ phone numbers. That cost has gone up, Signal says, as telecom firms charge more for those text messages in an effort to offset the shrinking use of SMS in favor of cheaper services like Signal and WhatsApp worldwide.

Another $19 million a year or so out of Signal’s budget pays for its staff. Signal now employs about 50 people, a far larger team than a few years ago. In 2016, Signal had just three full-time employees working in a single room in a coworking space in San Francisco. “People didn’t take vacations,” Whittaker says. “People didn’t get on planes because they didn’t want to be offline if there was an outage or something.” While that skeleton-crew era is over—Whittaker says it wasn’t sustainable for those few overworked staffers—she argues that a team of 50 people is still a tiny number compared to services with similar-sized user bases, which often have thousands of employees.

read more: https://www.wired.com/story/signal-operating-costs/

archive link: https://archive.ph/O5rzD

175 points

There’s something kind of funny about one of the largest expenses being SMS and voice calls to verify phone numbers when one of the largest complaints about signal is the phone number requirement. I wonder how much this cost factors into them considering dropping the phone number requirement.

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25 points

Phone numbers will still be required to sign up, you only won’t need it to add a contact.

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10 points

Seriously? Boo :(

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19 points

Probably helps cut down on spam and bot accounts

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110 points

If they drop the phone number requirements, you will get spam, a lot of spam. Much more than now.

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-21 points

Because there are no other possible verifications apart from phone numbers? Do you open a bank account with your phone number, because it’s the only way?

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72 points

What would you think would be an appropriate alternative to easily verify chat accounts that’s cheaper than validating phone numbers?

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3 points

I open a bank account with a copy of my id, a copy of a bill to my adress, and some money. My phone number can be used along the process, like for a digital signature.

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6 points

Make phone numbers optional and add a setting to allow/forbid accounts with no phone number to message you. I bet phone numbers have zero effect on the level of spam.

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23 points

Interestingly this phone number complaint only shows up among techies and especially Americans. You guys don’t get to keep your phone number? I’ve had the same number now for 20 years here in Europe, it may as well be synonymous with my identity.

In fact, I’d say the phone number requirement, or at least option, actually promotes adoption in parts of the world. I wouldn’t have been able to get my mother to use Signal if it didn’t work with a phone number, for instance. She’s not gonna make an account just for a chat app. Phone number she already has.

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24 points

because people might feel uncomfortable sending unnecessary personal information to another party, especially if it does not change often, like the telephone number?

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2 points

I’m mostly contacting people I already know so using phone number (something I already have a collection of) is very handy to me

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39 points

Exactly because I have the same phone number for almost 30 years, that is the problem. It’s too deep interlaced with my real and personal identity and I regard it as a very private thing that only few people should have.

I don’t get the idea that a phone number should just be randomly given as if it was natural.

It’s good to have it as an option for example so my mother can use it simply and quickly, but when I go to a conference and want to connect to new people which are still strangers and will and don’t give my phone number. So in those situations I have to randomly use other chat system or share emails? When signal already is in my pocket and my main chat application 99% of the time and is perfect for 1 to 1 friendly chats?

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27 points

It’s actually a privacy issue because your phone number is tied to your physical identity so deeply that giving it out is giving too much away.

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6 points

My kids don’t have a phone number and I would be glad we could use Signal.

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3 points

should be optional.

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226 points

I’m glad that Signal choose to be transparent about its spending instead of hiding it from obscurity.

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26 points

Hiding from obscurity? 🤔

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-2 points
Removed by mod
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10 points

ESL. Bots don’t make that kind of mistake.

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-8 points
Deleted by creator
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31 points

An open call for sustainability is the opposite of that isn’t it?

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1 point
Deleted by creator
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17 points

You really dont know what it means if a Company is non-profit and opensource, right?

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-25 points

Session, a fork of Signal, is better because as far as privacy goes as you don’t have to download it from a store that violates your privacy. Just go to the offcial site and download the apk.

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1 point

How do you think that stacks up to jitsi?

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3 points

Isn’t that mainly for video calling?

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4 points

I think you’re right. Not really comparable.

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2 points

Jitsi was used for some time while matrix protocol video was under development.

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7 points
*

I really only use matrix/element I just was just shocked they’re paying 6 mil a year for phone verification and they aren’t completely underwater

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5 points

This is the way. Matrix rocks

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5 points
*

I prefer XMPP. Same thing, but lighter and easier to host.

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2 points

I use element, but for communication with family and friends I use signal. Element app is not as simple, it is a little clunky/buggy and slow. It is not ready for “normal” people.

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1 point

it is a little clunky/buggy and slow. It is not ready for “normal” people.

It uses full sync. You can try sliding sync client like Element X. It’s experimental, but should work.

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38 points

You can download a self updating apk from Signal’s official website

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1 point

As far as I know, this version doesn’t have push notifications for microG or google, so it will drain your battery a lot faster because it’s always on. People should just download the Google play version with Aurora Store.

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2 points

Actually, I’ve been using this version for about 4 years, and it does not impact the battery significantly at all.

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1 point

If true, same should go for this Session thing

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1 point
*

This version detects if you have Google Play Services when you first launch it. If you do, it’ll use it, if not, it moves to websockets.

If you installed GPS after launching Signal, you’ll need to go to in and erase Signal’s app data for it to reset again.

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0 points
*

The Aurora Store still uses Google for some pieces, it just provides an anonymized wrapper for them. The Aurora Store developer has an avatar of himself wearing a mask with the following profile info on GitLab.


Aayush Gupta (He, Him, His)
@theimpulson
Member since March 03, 2018
Bhilai, India
1:07 AM
Android Developer at Calyx Institute
aayush.io
aayushgupta219@gmail.com

He’s using Gmail, is that supposed to be ironically funny running all our engagement for his de-Googled product - through Google?

Before I switched to Graphene I ran CalyxOS. It was hacked to pieces and is no where near GrapheneOS or even PostmarketOS I’d say. In fact, I think iOS is probably more secure than CalyxOS!

As well microG has this, anyone step through all that code to verify?

            topDomainOf(Uri.parse(appId).host) == "gstatic.com" && rpId == "google.com" -> {
                // Valid: Hardcoded support for Google putting their app id under gstatic.com.
                // This is gonna save us a ton of requests
                true
            }

I’ve verified that a straight Session apk install on GrapheneOS does not use Google in any way.

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6 points

What’s their benefit over Signal? It can’t be just the downloads source.

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0 points

The biggest benefit is that Session can run completely independant of platform (Google/Apple) push services and will run completely self-contained. You can set Session to check for messages every X minutes. Of course while the app is open and focused, it’s real-time. This removes metadata collection on when/where/how you are messaging.

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1 point

What does the distribution method have to do with the privacy of the messages sent via the app?

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42 points

Does put into perspective how much it costs to run at this level and how their competitors are paying costs of similar magnitudes

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5 points

The blog/article calls it out out well: other tech companies are running at much greater magnitudes.

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