Now is the Time to Sell Customers on Digital Alarm Radio Transition
With analog cellular telephone service on the AMPS network allowed to phase out beginning in February 2008, security dealers and systems integrators need to prepare their customers for the transition now.
â€œItâ€™s just a matter of educating the market, getting out in front of it and positioning it in a world where networks are changing ever so frequently,â€ advised Gordon Hope, vice president of marketing, business development, Honeywell Security and Custom Electronics, Syosset, N.Y.
The Federal Communications Commission (FCC) has set Feb. 18, 2008, for ending the requirement that cellular telephone carriers provide analog mobile phone service (AMPS). These carriers have been converting their networks to digital for years and will be allowed after that â€œsunset dateâ€ to use the frequencies previously occupied for AMPS transmissions for digital cell phones.
Alarm customers whose systems use the AMPS network will need to have those systems converted to digital transmission, although other alternatives are being explored by the Alarm Industry Communications Committee (AICC).
Among these are convincing the cellular telephone industry and/or the FCC to extend the deadline and developing new digital equipment to replace the AMPS system.
Others using the system include the OnStar automobile communication system, services for the hearing-impaired, some governmental departments and public utilities. However, OnStar has announced it will convert to digital by the sunset date.
The FCC will comment in February 2006 and February 2007 on how the AMPS phase-out would affect hearing-impaired customers. It already has rejected a public safety argument advanced by OnStar to delay the transition.
One strategy being advanced by the AICC is to use an FCC extension of the sunset date to obtain less onerous financial terms from the cellular carriers to continue the AMPS service for a period.
â€œItâ€™s certainly painful, especially for the smaller companies,â€ said Lou Fiore, AICC chairman. â€œThis requirement is for installation of new equipment, and whether or not the customer will cooperate with the transition is up in the air.â€
Fiore is awaiting additional information from the FCC about whether a delay of the sunset date is possible.
â€œIf digital equipment was available for years, that would have been a different story, but this is all happening in a compressed time frame,â€ he declared.
He estimates Honeywellâ€™s digital radio products for AlarmNet-C, which use the AMPS network, will be out for testing during the first quarter of 2006 and available in higher quantities by the second quarter of 2006.
Simply because cellular carriers will be allowed by the FCC to stop transmitting the AMPS network after Feb. 18, 2008, does not mean that all of them necessarily will do so immediately, maintained Scott McPherson, director of marketing for Telguard Security Products, Lithia Springs, Ga.
â€œWhen I say they will turn off like a light switch in congested urban areas where theyâ€™re spectrum-challenged, in the square states analog can stay operational for decades,â€ he asserted. The advantage to keeping AMPS in sparsely populated rural areas is that the FCC allows analog cellular radios to operate at higher power, which can provide greater coverage.
Telguard has a UL-approved digital cellular alarm communicator available now. The AICC is gathering information to present to the FCC to request that the sunset deadline be extended.
They are asking members of the security industry to complete and send to the CSAA's offices by Jan. 20 the survey available at www.csaaul.org/2005AICCAMPSTransitionSurvey.doc.
One solution the AICC also recommends on the assumption that the AMPS network will be phased out eventually if not in February 2008 is that security dealers and systems integrators stop installing AMPS systems now.
â€œThe economic differences between analog and digital are huge for a carrier,â€ McPherson emphasized. â€œFor every frequency theyâ€™re using to support one analog voice customer, they can get eight to 10 digital customers on the same frequency.
â€œGiven that carriers spent billions for that spectrum, if they can get eight to 10 new customers on the same piece of real estate theyâ€™ve already purchased, that translates into huge economics for them,â€ he pointed out. â€œThis is a big train thatâ€™s coming, and thereâ€™s nothing thatâ€™s going to stop it. The economics for it are absolutely overwhelming.â€