The song was composed circa 1980 as an instrumental entitled "Satellite". The song was attempted by Yes on the sessions for Drama. Chris Squire wrote lyrics later, most likely when the song was to be recorded by XYZ.
The lyrics are about telephone conversations, when one person is talking about something important and the other isn't listening.
"Telephone Secrets" has been included on XYZ and Yes bootlegs. An instrumental take on the song was released on the 2004 remaster of Drama, under the title "Song No. 4 (Satellite)".