By Sandra Wendelken, Editor
Competition among Project 25 (P25) suppliers is improving and overall prices for P25 equipment are decreasing, although perhaps not as quickly as with other technology standards. More than 12 vendors offer P25 mobile and portable radios, while only four vendors provide P25 trunked systems. There are eight conventional infrastructure equipment vendors.
In fact, the U.S.-developed public-safety communications standard is used in more than 200 systems and by 1 million subscribers worldwide, according to data from Motorola. “I’m not sure there is a major radio vendor out there who doesn’t have a P25 product,” said Neil Horden, program manager of the P25 Technology Interest Group (PTIG), comprised of P25 users. “There really isn’t anyone who’s not playing.”
The higher number of P25 radio suppliers has caused current radio quotes to be about 33 percent less than federal contracts for basic P25 radios in 2003. Some radios with advanced encryption standard (AES) encryption are approaching $1,000, while high-end radios with the most robust features cost around $2,500 in competitive procurements, according to the Televate analysis. In some competitive procurements, there have been discounts of as much as 60 percent.
“The market leaders are now having to drop prices for some equipment and develop new models to compete,” said Joe Ross, partner at Televate, who conducted the research.
The conventional base station market also offers competitive pricing because of the larger number of suppliers. Televate analysis found that vendors typically offer 20-percent discounts on trunked infrastructure for mid-sized systems. Only three suppliers, Motorola, Tyco Electronics Wireless Systems and EADS North America/Tait Electronics, offer simulcast systems, and the EADS/Tait team just recently entered the market. “Recent procurements could be signaling more price competition for infrastructure,” Ross said.
“To differentiate from their competitors, vendors are introducing new features, both standard and proprietary, at a much faster rate,” Ross said. Standardized features include Phase 2 Common Air Interface (CAI) ready systems and over the air rekeying (OTAR). Proprietary features include GPS/location-capable radios and over-the-air programming (OTAP), among others.
Horden said several catalysts for the expanding competition, including a larger overall market and more digital products. “With different digital modulations coming out, vendors can spread out their development costs,” he said. “Vendors can leverage their technology developments across all their product lines, making entering the market easier.”
