[Karsten Nohl], with a group of security researchers has broken the A5/1 Stream Cipher behind GSM. Their project web site discusses their work and provides slides(pdf) presented at 26C3. A5/1 has had known vulnerabilities for some time now and is scheduled to be phased out for the newer KASUMI or A5/3 block cipher. This should be an interesting time in the cell phone business.
Thanks to [Tyco] and [MashupMark] for pointing us to this story.