Just to expand, lack of cipher status is a massive problem on every phone produced in the last decade. I've not had a warning on any smartphone I've used (Apple, HTC, Samsung, Microsoft etc) or for that matter on any feature phone I've used, including going back to things as old as the Nokia 3310, 6310, 8100 or as new as things like the Nokia 105 or E51.

Even on a handset that supports the indicator (the spec says all should) the spec also says this can be overridden by the SIM card and apparently most sim producers and macro operators disable the warning by default anyway.

It's also worth pointing out that I'm only aware of this being part of the GSM spec. I don't know what happens with CDMA (which I believe is prevalent in the USA) and 3G and 4G _can't_ run without encryption so it should (theoretically) be a non-issue there too.