speech encryption using dsp
I think that it is completely possible to implement the analog scrambler system in digital.
Using Analog Devices Video ADC and DAC such as ADV7202 you can convert the analog signal into a ditial one. Using a DSP and enough memory resources you can implement a cut and rotate system. or may be you can have more secure system by doing an encryption on incoming data using a famous encryption algorithm such as DES or AES. the cost for the entire system, when produced in large number of units, I think will be less than 100$.