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© Global Industry Analysts, Inc., April 2011

LAND MOBILE RADIO (LMR) SYSTEMS MCP-6587

1. INTRODUCTION, METHODOLOGY & PRODUCT DEFINITIONS...............................................1

Study Reliability and Reporting Limitations ................................. 1 Disclaimers..................................................................................... 2 Data Interpretation & Reporting Level .......................................... 3 Quantitative Techniques & Analytics ........................................ 3 Product Definitions and Scope of Study........................................ 3

2. INDUSTRY OVERVIEW .................................................4 A Prelude........................................................................................ 4 Need for Secured Communications Provides Fertile Environment for LMR Market ................................................... 4 Secure Communication Needs Lead to Introduction of TETRA and P25 ................................................................. 5 Competitive Scenario ..................................................................... 5 Current Market Conditions ............................................................ 6 LMR Skirts Recessionary Pressures........................................... 6 Investments in R&D Surges ....................................................... 7 TETRA Shipments Continue to Increase in 2009...................... 7 Key Statistics: ............................................................................. 8

Table 1: Worldwide TETRA Market (2009): Percentage Share Breakdown of Deployments by Region (includes corresponding Graph/Chart)................. 8

Table 2: Worldwide TETRA Market (2009): Percentage Share Breakdown of Deployments by End-Use Sector (includes corresponding Graph/Chart) .................................. 8

Outlook........................................................................................... 8 Market Drivers, Trends & Issues ................................................... 9 Low Cost, Convenience & Ease of Use Drive Market Adoption.................................................................................. 9 Growing Awareness Encourage Growth.................................... 9 Use of LMR in the Workplace Increasing ................................. 9 Technological Advancement to Push the Boundaries of LMR Services ..................................................................... 9 LMR Handsets: A Cut Above the Rest .................................... 10 Transition from Analog to Digital Radio Gains Momentum Worldwide......................................................... 10 Interoperability: A Key Success Factor ................................... 10 Interoperability for LMR and PTT Lend Hope .................... 11 SDR: An Antidote to Compatibility Issues.............................. 11 Poor User Experience Leads to End-User Disillusionment.........12 Costs Considerations.................................................................... 12 Implications of FCC Narrowbanding Mandate ........................... 12 Cost of Narrowbanding ............................................................ 13 Affect on License Holders........................................................ 13 Affect on Equipment Providers ................................................ 14 FCC’s Position on Second-Phase Narrowband (6.25kHz) Technology............................................................................ 14 Advancements in LMR Systems.................................................. 14 IP-Based LMR Service............................................................. 14 Specialized Mobile Radio (SMR) ............................................ 15 3G Cellular Networks............................................................... 15 4G Broadband Based Public Safety Land Mobile Networks........ 16 TETRA & P25: Built to Chase the “Digital Radio” Dream........ 17 TETRA ..................................................................................... 17

Advantages of TETRA over GSM ...............................................18 TETRA Operation Modes ............................................................18 Trunked Mode Operation (TMO).............................................18 Direct Mode Operation (DMO) ................................................18 TETRA Standards and Interfaces.................................................18 Why TETRA Better Than Conventional Radio Systems ............19 Easy to Use and Secure.............................................................19 One-to-One Calling...................................................................19 Higher Voice Quality................................................................19 P25 ................................................................................................19 P25 Phases ....................................................................................20 Phase 1 ......................................................................................20 Phase 2 ......................................................................................20 Phase 3 ......................................................................................20 P25 Open Interfaces .....................................................................21 Benefits of P25 .............................................................................21 Interoperability..........................................................................21 Support Multiple Vendors Sourcing.........................................21 Backwards Compatibility .........................................................21 Encryption Capability ...............................................................22 Spectrum Efficiency..................................................................22 Improved Audio Quality ...........................................................22 Enhanced Functions ..................................................................22 Comparison of TETRA and P25 ..................................................22 The New Wave of Compelling Low Cost Digital Technologies for Professional LMR.........................................23 DMR: A New European Standard for Digital PMR-System.......24 Motorola’s MOTOTRBO™ for the Professional Mobile Radio Market.............................................................................24 dPMR: A Low Cost Alternative to PMR446 ...............................24 Key Features: PMR446 vs. Dpmr.............................................25 Advantages................................................................................25 Applications and Markets .........................................................26 NXDN Land Mobile Radio ..........................................................27 Focus on Select Regional Markets ...............................................27 North America...........................................................................27 Migration from Analog to Digital .........................................27 Advanced Products in Digital Land Mobile Radio...............28 Narrowbanding in Canada.....................................................28 Europe: An Overview ...............................................................29 TETRAPOL Trunked Radio System ....................................29

3. PRODUCT OVERVIEW ................................................30 Introduction ..................................................................................30 Private Mobile Radio & Public Land Mobile Radio....................30 LMR System Architectures: Conventional Vs Trunked..............30 Conventional Radio Systems ....................................................31 Trunked Radio Systems ............................................................31 Frequency Allocation ...................................................................32 End-Users of LMR Systems.........................................................33 Public Safety Radio Services....................................................33 Police Radio Service .............................................................33 Fire Radio Service .................................................................33 Local Government Radio Service .........................................33 Highway Maintenance Radio Service...................................33

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© Global Industry Analysts, Inc., April 2011

LAND MOBILE RADIO (LMR) SYSTEMS MCP-6587

Land Transportation Radio Services ........................................ 33 Motor Carrier Radio Service................................................. 33 Railroad Radio Service ......................................................... 34 Taxicab Radio Service .......................................................... 34 Automobile Emergency Radio Service ................................ 34

4. PRODUCT LAUNCHES.................................................35 Twisted Pair Brings Two-Way Radios into Blackberry.............. 35 Vertex Standard Announces New Technologies in Digital Land Mobile Radio................................................... 35 Tallysman Wireless Rolls Out Sprite™ TW202 and TW201 Telematics Solution..................................................... 35 Harris Unveils BeOn ® Solution to Blend Land Mobile Radio Services and 3G and 4G Wireless Networks................. 36 New Solution to Enable Microsoft Lync to Connect with Land Mobile Radio Users ................................................ 36 Motorola Unveils MTM5400 TETRA Radio .............................. 36 Thales Unveils F@stnet-Twin ..................................................... 37 Kenwood Unveils NX-200S/300S Portable Transceivers........... 37 PowerTrunk Introduces Upgraded Version of P25 Land Mobile Radio Infrastructure ..................................................... 38 Verizon Wireless Launches Push-To-Talk (PTT) LMR Interoperability Solution........................................................... 38 Raytheon Unveils Analysis Software in Project 25 Radio System............................................................................ 39 Datron World Communications Launches Guardian II Range of Portable Radios .................................................................... 39 Harris Unveils VF-40................................................................... 40 KITS to Launch New IBM Plug-In ............................................. 40 Harris Introduces RF-1033M LMR ............................................. 41 Icom Introduces IDAS Series System ......................................... 41 Kenwood Rolls Out New ATEX-Complaint Radios................... 42 Axell Wireless Unveils CSDR438 Repeater ............................... 42 Tait Radio Communications Launches TM9135 and TP9135/40 Radios .................................................................... 43 RELM Wireless Launches KNG M150....................................... 43 Motorola Introduces Talkabout® MJ270R 2-Way Radios ......... 44 Daniels Electronics Launches Daniels Standalone P25 Five + One Channel Trunked Radio System............................ 44 EF Johnson Technologies Introduces TDMA Option for ES Series Radios ................................................................. 45 Thales Communications Unveils Liberty™ ................................ 45 EADS Defence & Security Launches THR9............................... 45 EADS Defence & Security Rolls Out TGR990 TETRA Mobile Radio Device................................................................ 46 EF Johnson Technologies Launches Lighting Control Head for ES Series Mobile Radio...................................................... 47 EFJ Launches ES Series Mobile Radios...................................... 47 RELM Wireless Rolls Out KNG P400 ........................................ 47 Etherstack and The National Law Enforcement and Corrections Technology Center Unveil APCO P25 Radio Network Pilot ............................................................. 48

5. RECENT INDUSTRY ACTIVITY ................................49 EF Johnson Technologies Divests 3eTI....................................... 49 Raytheon Bags Contract for Private Land Mobile Radio System Solution........................................................................ 49

PlantCML Bags Expansion Contract of CORP25 Radio Network in Tennessee...............................................................49 Kenwood and PowerTrunk Collaborate to Market P25 Land Mobile Radio Systems.....................................................50 MMRDA Awards Contract to DAMM Cellular Systems for Monorail Project..................................................................50 Country Fire Authority Selects Tait Radio Communications for Replacement of Radios .......................................................51 Zetron Delivers Acom P25 System to Tait Radio Communications .......................................................................51 Sepura Bags Contract from Alpha Ventus ...................................51 General Services Administration Selects Thales Communications' Liberty™ Equipment ...................................52 Axell Wireless to Offer Extended Wireless Coverage through Multi-Band Network ...................................................52 DAMM and PMR Products Deliver TETRA Infrastructure for Cardiff's RadioNet System..................................................52 Telstra Selects Tait to Upgrade Fleetcoms Trunked Network.....................................................................................53 RELM Wireless Secures Contract from USDA Forest Service.......................................................................................53 EADS Defence & Security Signs Contract with iASPEC Software ....................................................................................54 Thales Bags Contract from the Angolan Armed Forces ..............54 ARINC Radio Test Lab Conducts Test on Kenwood’s New Land Mobile Radio Equipment........................................54 Harris Corporation Takes over Tyco Electronics Wireless Systems ......................................................................55 National Rural Telecommunications Cooperative Inks Agreement with Utilities Telecom Council..............................56 Tait Radio Communications Unveils New Color Schemes for TP8100 Portable Range.......................................................56 EF Johnson Technologies Secures Order from The US Department of Defense .............................................................56 EF Johnson Technologies Secures Order from State Department of Corrections........................................................57 Motorola Takes Over iDEN Business from RadioFrame Networks ...................................................................................57 EADS Defence & Security Completes Deployment of TETRA Radio Network........................................................57 EADS Defence & Security Inks Contract with Sanchar Telesystems Limited .................................................................58 Daniels Electronics Renews Distribution Agreement with Icom America............................................................................58 EF Johnson Technologies Secures Contract from The US Internal Revenue Service ..........................................................58 EADS Defence & Security Completes Deployment of EADS TETRA System at Baikonur Cosmodrome ..............59 Rohde & Schwarz Professional Mobile Radio Bags Contract from the Saxony Highway Agency............................59 Rohde & Schwarz Professional Mobile Radio Bags Contract from Kuwait National Petroleum Company..............60 R&S BICK Mobilfunk Renamed as Rohde & Schwarz Professional Mobile Radio........................................................60 Verizon Wireless to Expand P2T Users.......................................60 ACG Systems Gains Contract From TSA....................................61 Harris Delivers LMR to the FBI ..................................................61 ARINC Expands AWINSTM.......................................................61

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© Global Industry Analysts, Inc., April 2011

LAND MOBILE RADIO (LMR) SYSTEMS MCP-6587

Spring Nextel and Motorola to Offer Services ............................ 62 Essen Fire Service Selects Sepura’s Radios ................................ 62 Clarity Communications Systems and Raytheon JPS Jointly Unveil Solution...................................................... 63 JPS Communications and Clarity Communication to Merge Technologies ................................................................. 63 EF Johnson Technologies Obtains Order from Louisiana State Police ............................................................................... 64 EFJ Renamed to EF Johnson Technologies................................. 64

6. FOCUS ON SELECT PLAYERS ...................................65 Axell Wireless Ltd. (UK)............................................................. 65 DAMM Cellular Systems A/S (Denmark)................................... 65 Datron World Communications, Inc. (US).................................. 65 EADS NV (The Netherlands) ...................................................... 65 EF Johnson Technologies, Inc. (US) ........................................... 66 Harris Corporation (USA)............................................................ 66 Hytera Communications Corporation Ltd. (China) ..................... 66 ICOM Inc (Japan) ........................................................................ 67 Kenwood USA Corporation (US)................................................ 67 Zetron, Inc. (US) .......................................................................... 67 Motorola, Inc. (US) ...................................................................... 68 MIDLand Radio Corporation (US).............................................. 68 PowerTrunk Inc (US)................................................................... 68 Raytheon JPS Communications, Inc. (US).................................. 68

RELM Wireless Corporation (US)...............................................69 Rohde & Schwarz GmbH & Co. KG (Germany) ........................69 Sepura Plc (UK)............................................................................69 Smartlink Radio Networks, Inc. (US) ..........................................69 Tait Radio Communications Electronics Ltd. (New Zealand)...........................................................................69 Thales Communications, Inc. (US) ..............................................70

7. GLOBAL MARKET PERSPECTIVE ...........................71

Table 3: World Recent Past, Current & Future Analysis for Land Mobile Radio Systems by Geographic Region - North America, and Rest of World Markets Independently Analyzed with Annual Sales Figures in US$ Million for Years 2009 through 2017 (includes corresponding Graph/Chart) .......................................................71

Table 4: World Historic Review for Land Mobile Radio Systems by Geographic Region - North America, and Rest of World Markets Independently Analyzed with Annual Sales Figures in US$ Million for Years 2003 through 2008 (includes corresponding Graph/Chart).................72

Table 5: World 13-Year Perspective for Land Mobile Radio Systems by Geographic Region – Percentage Breakdown of Dollar Sales for North America, and Rest of World Markets for Years 2003, 2010, and 2017..............72

COMPETITIVE LANDSCAPE Total Companies Profiled: 40 (including Divisions/Subsidiaries - 45)

Region/Country Players

The United States 22 Canada 2 Japan 2 Europe 15 Germany 2 The United Kingdom 5 Rest of Europe 8 Asia-Pacific (Excluding Japan) 4