FRS Muscles Its Way To Growth
By Amy Gilroy -- TWICE, 2/21/2000
FRS suppliers are flexing their muscles, preparing to capitalize on the 100% growth expected this year, by boosting features at the high end and shaving prices to below $50/pair at the low end.
Audiovox is pushing the envelope by incorporating a GPS tracker in one FRS model, and the company said it may add MP3-capability in the future.
Many suppliers are offering either AM/FM, FM or weather-band receivers in FRS units this year including Audiovox, Cobra, Motorola and Uniden. Midland said it will add "combination features" this summer, and Maxon is looking at an FRS with a built-in compass and altimeter, as well as a thermometer and weather alert. In addition, the company may simply package a compass with an FRS radio to add margin.
Kenwood and GE are also planning weather-alert models later this year.
Suppliers are also banking on the FRS craze spilling into the higher-end GMRS (General Mobile Radio Service) market.
GMRS radios operate on different frequencies (although they can share some FRS frequencies), and they require an FCC license to use certain frequencies. On the plus side, they have an additional range of up to 5 miles.
Panasonic will also get both feet wet in the FRS market this year, offering its first three models this spring.
Many suppliers believe that adding GPS, radios and other features will accelerate market growth and keep FRS prices and margins higher.
Cobra's senior VP Tony Mirabelli said of Audiovox's new GPS product, "frankly, it's not a bad idea. We're looking at a lot of applications, and I think you'll see more of that, certainly from us and from others as well."
At Sony, which currently offers a single FRS, radio products marketing manager Jim Pepe said, "I see a market for integration, especially when it improves the entertainment or communication value of the products. We're always looking at our own technology and how we could integrate it."
Audiovox's GPS/FRS combination model, called the FR-1GPS, is a 14-channel unit with 38 subcodes It's designed to help hikers, mountain climbers and other sports enthusiasts remember the paths they've taken and then provide "reverse directions" for return traveling. The unit can store up to eight sets of directions in memory.
The FR-1GPS will be available in the second half at a target retail price of $229.
Cobra claims that this will be the year FRS radios reach a critical level of consumer awareness and sales begin to skyrocket. The company is also predicting demand will spill over into the GMRS market as consumers begin to seek longer range, and it will therefore offer two GMRS units later this year.
"The big issue will be at what point we hit a threshold where sales will really start to accelerate," Mirabelli said. "We believe that by the end of the year there will be a fairly reasonable awareness level, and we're preparing to take advantage of that with these new high-power radios."
The new Cobra FRS-1000 GMRS radio has up to a 5-mile range and features 15 channels and 38 subchannels, as well as a backlit LCD. The FRS-2000WX adds a weather receiver and Cobra's exclusive Weather Alert feature, which will alert users to potential weather-related emergencies even when the unit is off. Both units are expected to ship in the second half at a price to be announced.
Just as the high end is moving higher, so the low end of FRS will decline, perhaps entering into the "toy" category.
GE's manager of business planning Derek Bing said, "People will grow to want longer-range GMRS products just as they have in cordless phones. But at the same time, what you may begin to see is someone bringing out a one- or two-channel unit with half the power, targeting the toy market. So there's growth at both ends of the market."
At the low end, Laral is debuting one of the first 14-channel models to hit $59 per pair. The model 805 has 14 channels and a backlit LCD. It comes with a signal indicator for receive and transmit, as well as a battery indicator and beep tone when the user releases the talk button. It uses four AAA batteries and is expected to ship this month.
Also new from Laral is the first "base station" for FRS radios that can work with any brand. Called the UFR-BS10, the unit can "learn" the codes on any FRS and can serve as a long-range (2-mile capacity) base station to communicate with other FRS owners in the neighborhood. It can also be switched to "short range" capacity to serve as an intercom within the home.
The UFR-BS10 has 14 channels with 38 subcodes, talk-confirmation tone, voice-activated transmission, channel monitor and other features. It is expected to ship in May at an estimated street price of $59.99.
A third new model from Laral is a water-resistant 14-channel unit with 38 subcodes. It is aimed to sports enthusiasts and is endorsed by Bill Dance, host of the television fishing show Bill Dance Outdoors. Called the BD-100-2, the unit is water-immersible and has six rubber gaskets plus a water-resistant speaker and microphone. Other features include talk-confirmation tone, voice activation and channel scan. It has a suggested retail price of $129.99 per pair.
GE said it will offer a three-channel model later this year at approximately $50 per pair.
Panasonic is entering the FRS market with two models, both offering 14 channels and 38 privacy codes. Both FRS models are water and shock resistant, and they can convert to a telephone-type form factor. The step-up model adds a scramble feature for privacy and vibrate ring.
Shipping for the Panasonic models is planned for March at suggested retail prices of $99 and $119 each.
Other new products from Audiovox include the five-model 500 series, which leads with a three-channel ultra-compact FRS with VOX and a "dual watch" feature that allows users to speak on one channel but monitor one other channel for incoming calls. It also has a three-position fold-down antenna at $69 per pair. One of the step-up models, the 550, has a 10-channel NOAA weather band and is joined by the 560FM with FM radio and headphones.
Also new from Audiovox is a GMRS 15-channel, 2-watt model with a 5-mile range at $139. This unit, the GMRS-1525, is aimed to radio enthusiasts and requires an operators license.
Motorola has a new three-model lineup, the T6000 series. It includes a Basic 14-channel model; an Urban Outdoor Sport model with FM radio, thermometer and headphones; and the Outdoor Sport with thermometer, compass and altimeter. The units will ship in July at suggested retail prices from $129 to $179 each.
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