First, let's separate fact from fiction.  With the exception of CB, FRS and MURS, the operation of a radio transmitter with a power output of over 50 milliwatts requires an FCC license and GMRS can NOT be used for business purposes.  Licenses are issued only by the FCC after submission of properly coordinated forms with current authorizations being valid for 10 years.  You cannot share a license unless both users are qualified for licensing and there is a valid agreement in writing between the licensee and the unlicensed user. You must transmit you station call signs, either verbally, or in Morse code at least once an hour or at the end of your transmission.  Violation of the aforementioned or any condition of your license can result in fines, forfeiture, or even imprisonment!

 

Most commercial and public safety Low Band, VHF, and UHF systems are authorized a bandwidth of 25 kHz which will be valid until the expiration of FCC license.  Some licenses are granted authorizations for 12.5 kHz which requires radios capable of narrow band operation.  For these radios to perform near comparably with 25 kHz radios, a feature called compandering should be used.  Otherwise there will be significant range degradation.  Current users are under no requirement to reduce bandwidth to 12.5 kHz until expiration of their existing authorization.

 

Now it gets a little complicated.  The FCC is requiring all manufacturers to produce 6.25 kHz capable equipment by January 1, 2011.  This is similar to government requirements that the automobile industry produce vehicles capable of achieving fuel consumption goals of 40 mpg or better.  When that better car is built, people will buy it.  The same is true with 6.25 kHz radios since to achieve this performance level, the radio will have to be digital versus current analog technology.

 

Digital radios consume less current (batteries last longer), generally talk further, and can incorporate advanced features such as text messaging, GPS tracking, and even connection to the Internet.  With few exceptions, digital radios cost more than analog radios, but as volume goes up, prices go down.  The reverse is also true.  When volume goes down on analog radios, the prices will go UP!

 

There are other government standards such as SAFECOM and Homeland Security mandates requiring digital equipment of a specific type (P25) for all government agencies.  Does this have any effect on commercial users?  Indeed it does!  The US Forest Service uses P25 digital radios operating at 12.5 kHz.  Coordination with the US Forest Service would require a compatible radio.

 

There is also the issue of channel sharing between analog and digital radio.  They don't play well together.  Case in point - the Nextel system is digital.  It shares channels with conventional analog users, mainly public safety.  The use of digital equipment rendered the older analog systems virtually useless.  As a result, Nextel (now Sprint) was forced to spend (still spending) millions of dollars to correct the problem.  New digital users on current analog 2-way radio channels will NOT be required to correct any problems caused to existing analog users.  Caveat emptor!