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August 23, 2001

In My View

Editorial Opinion
by Doug Smith
KAF9830
WA6GON

The Consumer, the Manufacturer, the Retailer, and GMRS

"All we ask is that you do the homework on your product. Do the right thing. Help build GMRS but also help keep it uniquely useful."

It started last year (2000), and it is not necessarily a bad thing. Manufacturers again entered the GMRS market by introducing inexpensive simplex and repeater capable radios. Not since the early Maxon radios or the Radio Shack Model PRS101 have we seen such a resurgent interest in GMRS. It came about after FRS was carved from the GMRS Interstitial channels. AudioVox claimed in July 2001 that GMRS could be as much as fifteen percent of the company's new business. (This Week in Consumer Electronics Newspaper) Cobra, Uniden, Unwired, Wireless Marketing, Motorola, and Kenwood have all added FRS and GMRS radios to their product line up for the general consumer.

The consumer appeal for potential applications of old-fashioned analog non-subscription two-way radio is rising. People with many different interests find two-way radio very useful. New ideas for using family oriented two-way radio are driving a broader market. The cost barrier usually associated with UHF commercial radio products used in GMRS systems has finally broken down. Entry-level products have given consumers a taste of what reliable and powerful radio devices can do for coordinating family activities or personal activities with friends. Until the creation of FRS, families and sportsmen had no clue that two-way radio was this useful. It never occurred to consumers they could use two-way radio and be happy, especially after the bad press CB has received in the last 30 years. As far as consumers knew, only public safety and businesses needed sophisticated communicating devices. Such gadgets were out of reach in their mind.

Entry level products are a good thing. Getting more people into GMRS means the service less likely to be auctioned out from under us. The surge of popularity does have ramifications and increased popularity has had some deleterious effects. The entry-level GMRS radios range from "disposable toys" to very sophisticated radios for the price. Manufacturers are experimenting with ideas from dumb to dumber and smart to smarter. At GMRS Web we were completely unimpressed with the AudioVox GMRS Model 1525. On the other hand, we are about to publish a very good review of the Cobra PR1000 and PR-2000. The Kenwood TK3101 knocked our socks off , and even more surprising was how modest the company was about the radio and its capabilities. Pryme's PR460 hand-held GMRS radio, is a terrific radio for its price point. The good inexpensive radios frankly took us by surprise. We were expecting most of the radios to follow the Audiovox lead. We can now say with confidence that inexpensive does not mean radios are automatically garbage. Inexpensive means that manufacturers have to be up front with consumers about GMRS licensing eligibility and licensing fees in their advertising and at the store sales counter.

What has always had us worried at GMRS Web is the potential for the proliferation of unlicensed use and commercial use of GMRS channels. GMRS could become another chaotic unlicensed no-man's land like CB. Low-cost means more people can afford GMRS radios. Pirates in the commercial sector already use commercial-quality portable radios sold or leased by radio shops that should know better. Pre-consumer era licensees have a significant investment in their GMRS systems. In fact, at stake over the new popularity is the GMRS as we knew it, a reliable repeater oriented radio service that kept our families in touch.

We are also concerned about compatibility of newer radios with legacy systems. Manufacturers are already designing new radios for super-narrow band (same as FRS radios) but are not building the receivers in these radios to be fully compatible with existing wide-band GMRS systems. That is going to tick off lots of customers

We still worry that the shenanigans of a few moneygrubbers will destroy GMRS. The new GMRS is moving towards a repeater/simplex radio service with many of the simplex users failing to license. One company's desire for quarterly gains in the short term just might be the nuke that ruins everything for everyone. Low-cost GMRS radios are turning up in commercial use. Families and sportsmen buy the radios not realizing a license and license fee is required. The consumer's distinction between the GMRS and FRS is now blurry and confused thanks to poorly written advertising messages at retail. Advertising directed at purchasers of GMRS and FRS radios continues to be vague and misleading. Retailers have no clue what they are selling. In some cases they cannot even rely on the information printed on the box or from the manufacturer. It used to be that you bought a GMRS radio from a real radio dealer. Now you can buy a radio almost anywhere.

Manufacturers have us concerned. We think the deleterious effects of their advertising actions and inexpensive poorly made products hurts the service by confusing the consumer about licensing and quality issues. The already blurred distinction between FRS and GMRS created by the marketing of early inexpensive entry-level GMRS radios gets blurrier not clearer. The market confusion is tough to deal with after the fact.

There are obviously competing interests here. On the one hand, consumers want a long-range, reliable communications tool, free from the annoyances and abuses present in CB. They also want their investment in GMRS hardware and repeater systems protected. However, manufacturers and their representatives want their products to appeal to the widest range of consumers to maximize profits. The short-term corporate outlook could create a flood of low-cost, disposable radios into the service, ruining the long-term viability of GMRS. Or, more responsibly, these corporations could consider a longer-term and constant return on their investment by producing high-quality products, and/or by clearly noting that the service requires licensing.

How can this serve everyone interests? By keeping the service "civil" and useful, families (read: CONSUMERS) will realize how valuable wireless communications can be, and they will continue, over the long-term, to purchase GMRS and related products. Families will also become increasingly quality-conscious, and will likely purchase more expensive and reliable hardware once they realize how useful GMRS is. Such an approach will generally increase "consumption" of radio products nationally, and not contribute to an inevitable consumer rejection of all things "radio" because of a bad experience.

The "me-too" marketers selling GMRS radios that look like toys have no apparent plans for product upgrades or expanding marketing effort to more sophisticated users.. They have done nothing to develop a vertical market. All we see happening in some instances is the dumping low-quality product for short-term profit. Where's the long term benefit? Marketing managers need to start thinking outside the box if they want to succeed.

What do we want from manufacturers? Let me bullet a few points.

  • Integrate new features in your products that do not blur the distinction between a licensed and unlicensed radio service. Such actions do the service an injustice and only confuse the consumer. Design new GMRS products for specific sports or consumer activities. Design clothing to accept the radios and the radio accessories. Do we have a bike helmet with a UHF antenna on top yet? Do ski jackets have radio pockets where the antennas are in the clear over a shoulder? Design a high quality low-loss mobile antenna system for UHF that a consumer can benefit from. Where are the GMRS base station antennas and high quality feed lines? How many of you marketing types know that moving RF to an antenna at UHF is NOT the same as CB? Some real old fashioned product brainstorming is in order! You need to know your market, its potential, and then plan for long term commitments to it.
  • Avoid styling ALL new GMRS radios like FRS radios or toys. Come up with something unique for GMRS radios that benefits users and the service. Put your product managers to work looking beyond "me-too" marketing. Copying everyone else is not original! Entry-level GMRS radios can be made less like toys. Put a sturdy case on the outside and use simple controls. Test your radios before you sell them. Make sure you are living up to your claims.
  • Test your radios before you sell them. Make sure you are living up to your claims and meeting FCC specs. One of the entry-level GMRS radios we tested could not come close to the advertised two-watt output power. Are you going to take pride in your product or just take pride in your marketing regardless of what you sell?
  • Go along with GMRS licensing. Regardless of what you think about GMRS licensing, GMRS licensees believe it has value. We believe that people respect things they have to pay for. The CB service as an example. After eliminating licensing, CB became a wasteland. Please do not use market place activism to turn this radio service into an unlicensed service. If you have an idea about changing GMRS, notify the Personal Radio Steering Group and share it with the GMRS community. Tell us what you want to do and why. The FCC Rules and licensing structure were designed to give the service life, utility, and order over the long term.
  • Before you put bells and whistles in your products ask around. Is it something that a marketing or product manager believes is cool or is it something our culture really cares about, e.g. call tones. Do your employees really know anything about the service or are they just experts with statistics and marketing mumbo jumbo? Are you a radio company or a marketing company? Did you know for instance that FCC Rules & Regulations Part 95.181 Permissible Communications, item (h) says: A station operator may not communicate a tone-only page (tones communicated in order to find, summon or notify someone). Further, in FCC R&R 95.183 Prohibited Communication item (a.6.) Music, whistling, sound effects or material to amuse or entertain. Call tones are not and have not been used as intended by the consumer. Call tones are one way tone paging if used as intended but more often substitute as sound effects to amuse, entertain, or annoy! Some of the manufacturers have actually designed in recognizable musical selections to use as "call tones." The feature is a complete nuisance to GMRS and FRS and probably is not entirely legal. So why do we have call tones? Because the radios are being marketed like toys and marketing managers are not using their noodles. We could have digital call alert! We could invent a new scheme that didn't annoy! Are you designing products or just marketing them?
  • Please do not promote your products with potential customers that are not eligible to license in GMRS. GMRS licensees are watching for these ads and we are calling them to your attention.
  • Promote GMRS as a personal radio service for families. Sell to families. There are more families that could use radios than there are businesses. Sell systems! Sell installations! Sell base stations and mobile units as well as hand helds and repeaters. Think about engineering standards and how you will help your customers achieve positive results with their family GMRS system. Build a market around the current rules instead of building a new market to change the rules. The FCC is going to remember the MURS fiasco. That hasn't ended yet. Are they going to continue to allow marketing departments to dictate the rules?
  • Train your retail sales teams. It is such a bummer to visit a store and find blank stares when you have product questions.
  • Consider cooperating with GMRS licensees and sponsor a community repeater. Invent new ways to market, and activate community repeaters so you can sell radios to families that take advantage of repeaters. Sell GMRS repeaters to licensees that will install them near parks, tourist areas, and in the countryside. Sell them to licensees that will allow other families to use the repeater. Make the repeaters available for general use by GMRS licensees.
  • Develop new uses for GMRS that enhance the utility of the service for family activities. Camping, sports, driving etc. Work with GMRS Web and PRSG to promote CTCSS 141.3 as the default traveling tone for GMRS simplex and repeaters.
  • Work with the GMRS community to reduce the license fee and make the licensing process faster and easier. What about point of sale licensing?

GMRS has faced and faces a number of serious problems brought about through changes introduced by industry:

  • Radio shops sell and lease GMRS radios to companies and organizations ineligible to license in GMRS. Unlicensed users interfere with GMRS licensees. In Northern California alone over 115 unlicensed users were found put in service by traditional radio shops and dealers. Local and national dealers.
  • Radio shops install "secret" simplex systems on GMRS repeater inputs thinking no one will notice. These systems interfere with GMRS repeaters.
  • Marketing sell sheets promote GMRS radios as suitable for business use even though non-individuals have not been allowed to license on GMRS since 1987.
  • Retailer websites and catalogs promote GMRS radios as suitable for business use.
  • Retailers fail to advise customers that a GMRS license is required.
  • Retailers fail to tell consumers that an $75 license fee is required for a five-year-renewable license and that the fee is paid every five years. One company actually claims on their box that the fee is a one-time fee. It is painfully obvious the marketing and product managers for some entry-level GMRS products are clueless. If the behavior is not intentional it ought to be embarrassing.
  • There is massive interference to GMRS repeaters brought about by placing FRS channels 8-14 in-between GMRS repeater inputs. We are living with this now by re-engineering our GMRS systems. The cost in time and equipment has been considerable. Maybe FRS radios on channels 8-14 need their own CTCSS or DCS tone scheme?
  • Congestion of portable-to-portable channels, FRS 1-7, in metropolitan areas and highways. The advent of unlicensed use on the GMRS Interstitial channels has turned FRS into a short range CB service with similar interference and silliness. It is very hard to get through to your family member on the radio when a child is singing into his FRS radio on top of a 3800-foot mountain. Marketing managers are NOW touting GMRS channels as less congested! Dumb to dumber! If the consumer does not understand the difference between GMRS and FRS GMRS will be just like FRS in no time and it will not be less congested! The unlicensed parent is still going to give the kid the radio and let him sing into it!
  • Advertising of GMRS radios as GMRS and FRS hybrids. Consumers think the new breed of GMRS radio is just a more powerful FRS radio that does not require a license! Every manufacturer is copying every other in this regard.
  • Building GMRS radios with incompatible receivers making communication with legacy systems difficult or impossible.
  • Dumping of very cheap poor quality toy-like products on the market created a new glut of bubble-pack pirates. In one case, the radios did not meet FCC Type Approval claims. An advertised two-watt radio could barely reach .9 watts.
  • Introducing call tones to GMRS. Call tones are rarely useful. Children use them as an annoyance device. We think the musical tones also leave them with the impression that playing music from a broadcast radio into a two-way radio is OK. It is against FCC rules.
  • Retailers are often non-responsive to complaints from licensees. Problems get worse instead of better.
  • Catalogs promote a certain FRS radio model as good for room monitoring or baby monitoring when FCC Rules forbid this type of one-way use. Despite complaints, this national radio retail marketing company continues the campaign. Can you imagine the interference that would result if all fourteen FRS channels in an area were re-broadcasting the noises from baby's room from high altitude homes!
  • Some radios come shipped to consumers and radio shops fully loaded with GMRS channels. One can reprogram these radios for other commercial channels so the radio is also marketed to the commercial user. There are two big problems with this approach. Some retailers are uninformed or lazy and sell the radios with GMRS channels to anyone who will buy them. Others market the radio as a commercial radio but fail to make the distinction that the radio really isn't a GMRS only radio it just comes programmed by default that way. Manufacturers either have to end default-programming, and ship all channels blank, OR be honest about what the radio can do before the sale and reprogram it for the client!

Here are some of the cool GMRS and FRS features we have seen:

  • Introduction of GMRS and FRS radios with NOAA Weather channels.
  • Introduction of narrow band transmitters with receivers capable of receiving wide band legacy GMRS systems.
  • Proposed use of GPS technology. Currently under developed by Garmin.
  • Introduction of FRS and GMRS helmet radios for motorcyclists and bicyclists. The HJC Chatter Box.
  • Automatically adjustable squelch that works.
  • Easily selectable CTCSS and DCS tones.
  • Voice scrambling on FRS.
  • The FRS mobile radio.
  • The FRS table radio.
  • Jabra focus groups testing exciting new accessory products.

They came to us and asked.

Three manufacturers had their marketing and product people initiate contact with GMRS Web. We have appreciated the opportunity to engage in a dialog with these firms. We see the interaction as an opportunity to promote the radio service. We think it also helps each company make good marketing and product decisions. They put their products on the line by submitting products for review. Pryme Inc., Kenwood USA, and Jabra Inc to their credit, are listening, asking questions and taking criticism where warranted. Impressive when you consider the size and market power of each company. We encourage vendors, manufacturers, and radio shops to take part in the forums at GMRS Web. Ask our readers questions, set up surveys, conduct product testing, or focus groups. Take advantage of GMRS Web and our readers so we can help you improve what you sell. And if your company sees the magazine of value - advertise with us. We can use the support.

When we call or write you do, not blow us off.

I am still baffled over one company that argued the legality of selling GMRS radios to business users. Despite FCC rules to the contrary, this company's support organization argued that they were following all applicable FCC Rules in the marketing of their devices. They insisted their marketing experts were experts when their sell sheets blatantly demonstrated otherwise. If you hear from a GMRS licensee, or GMRS Web, take notes and check out the story. Our community wants to help you do your job right because we want to protect the radio service. Your actions and your products shape the service. As we expand to include more people on 15 GMRS frequencies we ask that you think very hard about what has gone before your entrance into the market and what will come after as a result. We want you to be successful and we want GMRS to be a useful family communication tool.

Do your homework.

We know the market is competitive and that advance knowledge of new product design is something you need to protect. All we ask is that you do the homework on your product. Do the right thing. Help build GMRS but also help keep it uniquely useful.

Doug Smith
KAF9830
WA6GON


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Last updated August 23, 2001

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