A method and apparatus is used for generating a perfectly random secret key between two or more transceivers in a wireless communication network. In a point-to-point system, both transceivers produce an estimate of the channel impulse response (CIR) based on the received radio signal. The CIR estimation is synchronized and may include error correction and detection. A long secret key of bits is generated from a digitized version of the CIR estimate, from which a perfectly secret encryption key is derived by privacy amplification.