Radio Report

Budget/Stadium Towing and Recovery

1095 E. Michigan Ave. Phone 734 482-6831Ypsilanti, MI 48198-5805 Fax 734-482-6835

Communications & Coordination

PART ONE:Two-Way Radio & Communications System Client Proposal for: Budget / Stadium Towing

Conducted by: Ronald W. Wilbanks

December 3, 2000

Chapter Introduction1Communications & Coordination ReportTwo-way Radio & Communications Proposal for: Budget / Stadium Towing.

Executive Summary:

Currently, Budget and Stadium Towing Companies utilize two-way radio technology systems that are incompatible with each other. This rather acute problem can be solved by currently available technology, which is already in place. The systems that will be examined in the scope of this report are as follows:

1) Nextel, utilized by Stadium Towing and Recovery, is a nationwide wireless communications network that utilizes: cellular, data, fax, paging, and two-way radio technology. Nextel has varying rate structures based on group or private calling.

2) Bearcom, LTR Two-way radio system, utilized by Budget Towing, is a trunking radio system that selects from one to five radio channels and assigns the first available channel to the user, thus eliminating any time loss while waiting for a clear channel. This system allows for unlimited airtime with a flat rate fee based on the number of radios that each customer wishes to currently use or add in the future.

3) Conventional two-way radio repeater used by Bill Martin Towing, until 1998. Provides essential two-way radio communications over the entire area covered by both Budget and Stadium Towing. This system, which is licensed for both repeater/talkaround (direct) simplex communications, is currently valid until December 2002. This repeater can be re-activated for a small fee and placed back into operation as a redundant “failsoft” radio system, to the Bearcom LTR system.

A decision must be made shortly in regards to future telecommunications systems for both Budget and Stadium Towing Companies. This report will attempt to analyze both systems currently in place and provide cost effective measures, for future growth of both companies communications needs.

Future Expansion Probabilities:

Currently, the Nextel system has very limited growth potential and would require the procurement of a new base transmitter(s) to facilitate a larger number of radios on our

system. In addition, the use of group call functions are prohibitively expensive, as will be discussed later in this report.

The Bearcom, LTR (Trunking), UHF, two-way radio system, currently in use by Budget Towing, allows for the ability to add 16 group and numerous private call channels for each user, with an unlimited number of portable and mobile transceivers assigned to each talkgroup, thus allowing much greater flexibility.

How Does Trunking Radio Technology Work?

Trunked radio systems are those, which share a small number of radio channels among a larger number of users. The physical channels are allocated as needed to the users who are assigned talkgroup channels. The users only hear units on the same channel. This uses the available resources more efficiently since most users do not need the channel 100% of the time.

The term trunking comes from the telephone industry. For over 100 years, the lines between telephone exchanges have been shared between customers. In early telephone exchanges, operators would call an adjacent exchange and patch thru a call when a customer was located there. She just selected the next circuit, which was not in use. Now the allocation is automatic but the results is the same.

Radio channels were shared since the early days of radio. The operators would have to listen on a frequency to determine if it was in use. Mobile telephone systems similarly required a customer to find an inactive channel manually. These systems were upgraded by hardware that could find a vacant mobile-telephone channel automatically and by two-way radios with sub-audible (CTCSS) tone equipment, starting in the late 1950s.

In the mid 1980s, microcomputers created a revolution in control applications. A real computer could be put inside a two-way radio. The result was the development of cellular telephones and trunked radios. Both systems have a central computer, which manages the system. It communicates with the mobile radios via a data signal. The user does not hear these control signals and need not be concerned with them.

When a trunked radio user wishes to talk with someone on the same (talkgroup) channel, he simply presses the microphone (PTT) button. The mobile radio then sends a data signal to the controller requesting a channel. The controller responds with a physical channel number. The requesting radio switches back to receive long enough to hear this information. At the same time, all the other radios hear the same conversation. Those with the same talkgroup channel selected, follow to that physical channel. They use that channel just as any other two-way radio would.

These radio systems use repeaters. The base station transmits from a tall tower or building on the base frequency. The mobile units listen on that frequency but transmit on another frequency paired with it: the mobile frequency. The base station receives the mobile frequency and repeats the audio onto the base frequency paired with it. Thus any mobile that can hear the base station, can hear all other mobiles, which the base station hears. These repeaters extend the mobile-to-mobile coverage.

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Logic Trunking Radio (LTR) Technology:

The Logic Trunking Radio (LTR) protocol is one of the oldest and most reliable trunking formats available. The LTR was invented in the late 1970's by E. F. Johnson Co. Currently, there are many manufacturers of equipment that is compatible with the LTR format, unlike the others (Motorola and MACOM) that have proprietary trunking codes. This is why LTR is more popular with the business users as the equipment can be 1/3rd less in cost than the proprietary systems, this is of course due to competition among the two-way radio vendors.

Here is an overview of how the LTR format works: Unlike Motorola and GE trunked radio systems, LTR does not have a dedicated control channel. Each radio repeater has its own controller and all of these controllers are synchronized together. Even though each controller monitors it's own channel, one of the channel controllers is assigned to be a master channel that all controllers report on. Each of these controllers sends out a data burst approximately every 10 seconds so that the subscriber units know that the system is there.

LTR Trunking Talkgroup Concept:

All trunking radio systems, utilize the concept of talkgroups which are different channels that can be programmed on two or more radios, based on the needs and desired flexibility of the user. Such talkgroups can be used to divide a companies operation from one district to another. Talkgroups are in essence building blocks that can be changed and reconfigured for dynamic or future growth. For instance, the following is a list of talkgroup examples:

Budget Dispatch

Stadium Dispatch East

Stadium Dispatch West

Unit-to-Unit

Tactical

Management

Repair Garage

Each LTR radio has an alphanumeric display that would be identically programmed according to our wishes and desires for standard uniformity.

Chapter System Coverage23

Communications & Coordination ReportSystem Location and Coverage Analysis.

Nextel Radios:

Advantages:

Nextel is a nationwide communications provider, which uses a cellular phone web infrastructure of radio towers, to ensure 95% coverage throughout the areas they serve.

Radios are programmed for either “private” or “group” call functions.

Area coverage plans can vary from local, regional, or nationwide, depending on the user’s requirements.

Disadvantages:

Can presently only talk to one radio at a time, this limiting dispatch time and the ability to coordinate logistical planning.

Group call rates start at $0.13 per minute, for each radio logged on. This becomes prohibitively expensive when used by two companies our size.

Users are at the mercy of Nextel’s continuing planned obsolesce and are required to purchase new radios every five years or so.

Nextel plans on a rate increase effective by mid-2001 that will cause an overall increase in their two-way radio rate programs.

Bearcom LTR Trunking Radios:

Advantages:

Bearcom is an International telecommunications solutions provider for large corporations, governments, and small businesses in over 75 countries.

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LTR Radio systems are rapidly growing around the world as a cost effective means of communications for small and large businesses alike. Many industry users include: busses, delivery companies, motion picture & television, public safety, railroads, towing, and trucking.

Currently, Budget Towing operates on this system with excellent coverage throughout the area served by them.

Budget’s Radios are fully upgradeable and can be reprogrammed to serve our needs until late 2005, when FCC frequency spectrum planning will make them obsolete.

More cost effective to use than Nextel radios.

Less likely, that driver will loose the radio, since its permanently mounted in the truck.

Disadvantages:

Lesser coverage range than Nextel. However, just as effective for our area of operations.

Radios cost more per unit but monetary savings in airtime can realized over time.

LTR System Location and Coverage Areas:

1. Bearcom’s primary site for the Ann Arbor area is located at 5330 Scio Church Road, in Scio Township [See Appendix A-2]. The terrain is 314 meters (1030 feet) above sea level. The LTR site located atop a radio tower 61 meters (200 feet) above the terrain. This site has a radius coverage area of 50 kilometers (30 miles) from the main site.

2. Bearcom’s secondary site is located in Detroit atop General Motors World Headquarters building, which is 223 meters (700 feet) tall [See Appendix A-3]. This site provides a radius coverage area of 56 kilometers (35 miles) from the main site.

Bill Martin Repeater System, Location and Coverage Areas:

The Bill Martin two-way radio repeater is located at 5800 Cherry Hill Road, in Superior Township [See Appendix A-4]. The terrain is 259 meters (849 Feet) above sea level. The repeater is on a guyed tower, standing at 108 meters (354 feet) tall. The tower and repeater are now owned by the Electronic Service Center, based out of Ann Arbor, Michigan. However, Bill Martin Towing is fully licensed to operate on this now shared repeater system through the FCC and granted rights from the tower sale since 1982.

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Chapter Cost Analysis3

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Communications & Coordination ReportSystem Pricing:

Nextel System Pricing:

Nextel offers two different communication modes: group and private. The following table is a cost breakdown for each individual radio. For each additional radio, multiply by the number of total radios for final price.

Nextel Radio System Airtime Fee: Per Month

Cost Per Year

Private Two-way $60.00 Per Radio $760.00

Single Group Call $5,616 Per radio $67,392.00

Two Group Call $8,640 Per Radio $103,680.00

Bearcom LTR System Pricing:

The Bearcom, LTR System, uses a different pricing structure with a flat fee for unlimited airtime on all radios.

Bearcom, LTR, TRS. Airtime Fee: Per Month

Cost Per Year

1 Site & 1 Talkgroup $18.00 Per Radio $216.00

1 Site & 2 Talkgroups $20.00 Per Radio $240.00

2 Sites & 2 Talkgroups $22.00 Per Radio $264.00

Each additional talkgroup is $2.00 monthly, per each radio site.

Bill Martin Two-Way Radio Repeater:

The Bill Martin, two-way radio repeater costs are $12.00 per month for each radio programmed onto the system. There is a $200.00 reactivation fee from the Electronic Service Center, in Ann Arbor, who is the current owner of the repeater. After December, 2002 when the current license expires. There would be additional fees of $3,500.00 to have a new license issued through the FCC coordinator, which would require further review in conjunction with the Canadian Ministry of Radio and Television. The present

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radio license of KNEH802, can be renewed indefinitely provided we abide by all FCC rules and regulations, under Part 90 of the FCC Code of Regulations.

System Pricing Summary:

From the results gathered in the aforementioned price tables. The clear winner is the Bearcom LTR, Trunked Radio System. In following table below you can examine the final yearly cost comparison of the radio systems currently in place.

Radio System Monthly Cost * Cost Per Year

Current Nextel System $900.00 $10,800.00

Bearcom, Current Budget Plan

$270.00 $3,200.00

Bill Martin Repeater $180.00 $2,164.00*Based on an average of 15 radios.

Now lets examine the monetary expenditures for the Bearcom, LTR system:

Bearcom, LTR Monthly Cost * Cost Per Year

Current Budget Towing Plan

$270.00 $3,240.00

Future plan 3 Talkgroups $330.00 $3,960.00

3 Talkgroups, + 1 private for Management

$360.00 $4,320.00

*Based on an average of 15 radios

Now lets revise the above table for a more accurate number of radios for future growth and managerial needs.

Bearcom Options Monthly Cost * Cost Per Year

Future plan 3 Talkgroups $330.00 $3,960.00

3 Talkgroups, + 1 private for Management

$480.00 $5,760.00

2 Sites, 3 talkgroups $480.00 $5,760.00*Based on an average of 20 radios

For a Ten-year price break down see: Appendix A-1.

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Chapter Equipment Costs4

Communications & Coordination ReportRadio Equipment Costs and Analysis:

Current Budget Towing Radios:

The Budget Towing, LTR Radio System, presently consists of GX4800UT mobile and HX482UT portable, trunking radio units manufactured by Standard Communications, Inc. in 1997. These radios meet the following specifications:

GX4800UT Features:

20 Systems/200 Groups

25-Watts Output

12.5/25 kHz Bandwidth

Frequency Range: 450 to 480 MHz / 470 to 512 MHz

Compatible with LTR and UHF Conventional Protocols

Five programmable instant-access function keys

HX482UT (Handheld) Features:

10 Systems / 109 Groups

4-Watts Output

Frequency Range: 450 to 480 MHz / 470 to 512 MHz

Compatible with LTR and UHF Conventional Protocols

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Advantages:

Low unit cost.

Easy to program via PC.

Disadvantages:

Does not meet any Military specs. for method 810 C, D, and E, for shock, vibration, moisture and hazardous environments.

Standard was absorbed by Vertex in 1999 and they plan to discontinue these models within the next year.

Not compatible with new narrowband technology that will become industry standard by late 2005.

Life expectancy is only 5-10 years, depending on operational environment.

Poor audio quality in the trucks, leading to many complaints by the drivers.

Not compatible with Trident PassPort Protocol.

New Radio Equipment:

It would be advantageous to procure new radios that operate on the Bearcom, LTR System that not only offer a high degree of dependability, but ease of service, installation and above all are user friendly. In addition, any future radios should be able to grow and expand not only with Budget / Stadium Towing, but with rapidly changing technology. These radios should not only support voice communications but data transmissions as well, should we ever decide to explore that option, with a simple upgrade to the existing radio system, not a total system overhaul.

The radios should be able to support a redundant “failsoft” backup conventional system to facilitate communications from Base-to-Mobile; Base-to-Base; and Mobile-to-Mobile, allowing communications when the main system is not operational due to any kind of failure. In addition, increased value can be realized from the conventional system by using it in a direct repeater or conventional simplex mode, for tactical communications.

Motorola Model CDM1550-LS:

The Motorola model CDM1550-LS mobile radio is clearly the most logical choice for our operations. This radio meets or exceeds all Military Specs. 810: C, D, and E and is fully upgradeable with future technologies that will be implemented after 2005.

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CDM1550-LS Features:

15 Trunked Zones; 16 Talkgroups each.

16 Conventional Channels.

14 Character alphanumeric display with user-friendly icons.

X-pand Audio narrowband digital audio enhancement.

40 Watts output power.

User programmable Scan functions: Group, All Group, Auto Group Select.

MDC1200 Signaling on all LTR systems: Caller ID, Selective Call, and Call Alert.

Horn and Lights activation.

Telephone interconnect capability.

Mobile Data Terminal port.

Fully supports Trident Pass-Port Protocol.

Trident Pass-Port Protocol:

PassPort is a trunking protocol developed by Trident Micro Systems that provides wide-area coverage and offers users and system owners several enhanced features, including:

Seamless roaming with automatic registration and de-registration between sites.

Piracy and cloning protection through Electronic Serial Numbers.

System Migration Path - PassPort protocol operates on Tridents' Network Trunking System (NTS) infrastructure, which also is compatible with radios and systems operating on the (Bearcom) LTR protocol. In addition, the NTS infrastructure has been designed to support migration to future digital technologies.

The Motorola CDM1550-LS mobile radio’s ability to fully support user migration to future digital technologies, makes this radio an even more logical choice, because it will not become obsolete in 2005 and require the purchase of replacement radios at that time. In addition, Bearcom has plans underway to covert to the Trident PassPort Protocol by early 2002.

Motorola Radius M1225-LS:

The Motorola Radius line has been in existence for over 15 years and has provided reliable two-way radios for small businesses in many countries. While the Radius, radios are not as durable as their mid-line CD1550 sisters and require frequent repairs in some

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cases depending on the environment they are placed in operation. They can be a viable short term, cost efficient alternative to the Standard Radios already in place.

Radius M1225-LS Features:

Frequency coverage 450-474 MHz.

Channel Capacity : Trunking Mode Capacity: Up to 8, Trunking Talkgroup Capacity: Up to 16, Conventional Channel Capacity: Up to 2.

Power Output: 40 watts.

Advantages:

Lower unit cost.

Can be used for temporary applications or installations.

Disadvantages:

Radios will become obsolete after 2005.

Motorola is considering discontinuing the Radius line as part of their current downsizing program.

Results: will be lack of parts and difficult to service or repair.

M1225-LS mobile radio is fully compatible with the LTR format but does not support the Trident PassPort Protocol.

Voice Encryption (Privacy):

The Bearcom LTR, system offers many great advantages, one of which is the option of user privacy. The use of voice encryption or more commonly known as “voice scrambling” provides a secure platform to conduct daily business. Many competitive businesses use voice encryption countermeasures to prevent intelligence gathering, which could be used against them and result in a substantial loss of revenue.

The Motorola CDM1550-LS offers the option of having voice encryption boards installed in them and could be used to by us to prevent competitors from stealing our service calls; thus, resulting in lost company revenue.

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Chapter Bids Received5Communications & Coordination Report

Bearcom International:

On October 31, 2000. Representative, Mark L. Campbell from Bearcom’s Farmington Hills, Michigan office made the following bid:

Bid Number: K20-003110-3-UTR-A

Motorola CDM1550-LS UHF Band 450-470 MHz LTR Trunked mobile radio, includes 40 watts RF Output, complete with: power cable, palm mic, mounting bracket, scan, programmed & a two year warranty: $725.00ea.

Motorola External Speaker: $40.00

5db gain antenna with mounting kit: $45.00

Base Station Microphone: $100.00

On site installation: $85.00 each

Voice encryption (Scrambling) board: $175.00 each

Installation and calibration of voice encryption board: $205.00 each

Reprogramming of existing radios: $25.00 first radio; $10.00 each additional radio.

Final price for the CDM1550-LS, speaker, and antenna: $810.00 plus tax.

Final price with voice encryption: $1,190.00

Second bid for M1225-LS:

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Motorola M1225-LS UHF Band 450-470 MHz LTR Trunked mobile radio, includes 40 watts RF Output, complete with: power cable, palm mic, mounting bracket, scan, programmed & a two year warranty: $525.00ea.





Final Price for the CDM1550-LS, speaker, and antenna: $610.00 plus tax.

On November 9, 2000. Mr. Scott Price from Advance Radio Technology, Cincinnati, Ohio, made the following bid:





On site installation: $183.00 each radio!


Final Price for the CDM1550-LS, speaker, and antenna: $889.00 plus freight

Second bid for M1225-LS:


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Motorola M1225-LS UHF Band 450-470 MHz LTR Trunked mobile radio, includes 40 watts RF Output, complete with: power cable, palm mic, mounting bracket, scan, programmed & a two year warranty: $539.00ea.





Final Price for the CDM1550-LS, speaker, and antenna: $610.00 plus tax.

On November 10, 2000, Ms. Anna Minzey, with the Electronic Service Center in Ann Arbor, Michigan, submitted the following bid:





On site installation: $90.00 each radio!

Reprogramming of existing radios: not applicable since they do not handle Standard Radio Products.

Chapter Final Comments616

Communications & Coordination ReportEpilogue:_________________________________________________________________________________

General Review and Recommendations:

After careful review of both the bids received and the level of services provided from each of the vendors, I recommend that we go with Bearcom for all of our radio needs. This is based on the following criteria:

We only have to deal with one radio vendor for all level of services provided.

Easy to program and service radios on site for less down time.

Bearcom is the owner of the LTR system in question and already provides services for Budget Towing.

No hidden second or third party fees.

All Motorola Radios come with a full coverage two-year warranty.

High level of commitment to customer satisfaction around the world.

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Closing Comments:

The purpose of this report is to examine communications services that are currently available, which would solve our communications needs and do so in the most cost efficient manner possible. Each of the vendors contacted expressed a sincere and honest attitude in helping both our companies to reach a higher plateau of excellence through improvements in communications technologies currently available. However, only Bearcom offers the most cost effective and comprehensive product package to meet our current and future communications needs.

The Bearcom LTR, system offers the best advantages for future growth. With the coming integration of Trident’s PassPort Trunking Protocol, to the current LTR networks in 2002. This makes the choice of using their network even more practical in the years ahead. In addition to the aforementioned cost savings over the Nextel system already in place. Bearcom plans on adding new features in the future that will make the LTR system even more versatile to meet the our needs in the future to better serve our customers in a more cost efficient and timely manner.

I strongly feel that after conducting this comparison between Bearcom and Nextel. The cost savings alone are sufficient reason to gradually phase out the general use of the Nextel radios currently in place. The only practical application I can see for them is if a driver is going to perform a long haul service outside the coverage range of the Bearcom LTR, system, where communications between him and the base are necessary. The driver could in fact use his own personal cell phone contact the dispatcher if any assistance is required.

Telecommunications technologies are changing everyday with new products being introduced by manufacturers throughout the world. What is innovative technology today is obsolete by tomorrow. However, I feel that the choices presented in part one of this report will be useful for the next 5-10 years and maybe beyond.

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Appendix A-1: Ten-Year Price Breakdown

Ten-year price breakdown between current Nextel Services and competitive service providers. Rates show reflect current prices charged for airtime and does not reflect any future increases for Nextel services provided over the next ten years.

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Appendix A-2: Ann Arbor LTR Coverage Area

Current coverage range provided by the Bearcom LTR site in Ann Arbor, Michigan.

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Appendix A-3: Detroit LTR Coverage Area

Current coverage range provided by the Bearcom LTR site in Detroit, Michigan.

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Appendix A-4: Bill Martin Coverage Area

Current coverage range provided by the Bill Martin Repeater site in Dixboro, Michigan.

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Appendix A-5: Bids Received.

Bids Received from radio vendors.

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Executive Summary:_____________________________________________________________________1

Future Expansion Probabilities:_____________________________________________________________2

How Does Trunking Radio Technology Work?_________________________________________________2

Logic Trunking Radio (LTR) Technology:_____________________________________________________3

LTR Trunking Talkgroup Concept:__________________________________________________________3

Nextel Radios:__________________________________________________________________________4

Bearcom LTR Trunking Radios:____________________________________________________________5

LTR System Location and Coverage Areas:____________________________________________________5

Bill Martin Repeater System, Location and Coverage Areas:_______________________________________6

Nextel System Pricing:____________________________________________________________________7

Bearcom LTR System Pricing:______________________________________________________________7

Bill Martin Two-Way Radio Repeater:________________________________________________________8

System Pricing Summary:_________________________________________________________________8

Current Budget Towing Radios:_____________________________________________________________9

New Radio Equipment:__________________________________________________________________10

Motorola Model CDM1550-LS:____________________________________________________________11

Trident Pass-Port Protocol:_______________________________________________________________11

Motorola Radius M1225-LS:______________________________________________________________12

Voice Encryption (Privacy):_______________________________________________________________13

Bearcom International:__________________________________________________________________14

General Review and Recommendations:______________________________________________________17

Closing Comments:_____________________________________________________________________18

Appendix A-1: Ten-Year Price Breakdown___________________________________________________19

Appendix A-2: Ann Arbor LTR Coverage Area________________________________________________20

Appendix A-3: Detroit LTR Coverage Area___________________________________________________21

Appendix A-4: Bill Martin Coverage Area____________________________________________________22

Appendix A-5: Bids Received._____________________________________________________________23

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