Internet entrepreneur Kim Dotcom has released an encrypted chat service, called MegaChat, to compete with the Microsoft-owned Skype.
The release would be rolled out gradually, beginning with video-calling on Thursday, he said.
The news came as it emerged a top EU official wants companies to be required by law to hand over encryption keys.
The EU counter-terrorism coordinator's proposal follows a similar call by Prime Minister David Cameron.
In a document leaked by the civil liberties group Statewatch, Gilles de Kerchove said encryption "increasingly makes lawful interception by the relevant national authorities technically difficult or even impossible".
BBC News - Kim Dotcom takes on Skype with encrypted chat service