The Business Behind Radio

Thinking about buying a radio system for your business? You’re probably looking at both FRS and LMR radios, and it’s worth looking into the details of each.

A Simple Radio Solution 

In the 1980s, the popularity of CB (Citizens Band) radio for personal use began to taper off, creating a substantial market gap for short-range personal communication devices. In 1996, the FCC established Family Radio Service (or FRS for short) as a license-free radio service for both personal and business use. FRS was designed specifically to provide short-range communication without the complexity and licensing requirements of other radio services. 

These FRS radios quickly gained popularity, particularly for recreation and adoption by small businesses for professional use. Their low cost and ease-of-use made them attractive for both casual users and small business operations. 

In 2017, the FCC revised their guidelines for FRS radios, allowing a slightly higher power output—increasing to 2 watts on certain channels. This capability improved both the range and clarity of FRS radios, making them even more viable for more demanding business applications. While FRS was primarily designed for personal and family use, its simplicity and license-free nature made it particularly attractive for small retail (sales floor and stockroom communication), restaurants (coordination between kitchen and staff), construction sites, and small event productions. 

FRS remains a solid performer in many operations, but their capabilities are typically suited to small to mid-size operations, or as a supplement to other communication systems. Their limitations in range, features, and number of available channels restrict their use in larger or more complex business environments. 

An Updated Standard

In 1949, the Federal Communications Commission (FCC) established the first regulations for Land Mobile Radio Service. The first LMR handheld two-way radio was introduced in 1962 and revolutionized portable communication but was limited to police, military, public service, and governmental use. It was adopted quickly due to its longer range, better dependability, additional security, and extended channel options. 

After Land Mobile Radio became accepted as a professional-grade communication system utilized by public safety organizations and government agencies, they became recognized for their value in large-scale business operations. Even though LMR radios still required FCC licensing in most cases, industries such as transportation, construction, and manufacturing were early adopters, using LMR to coordinate activities across large work sites or even fleets of vehicles.

As the technology evolved, more industries found turn-key applications for LMR: big-box retail chains used LMR for loss prevention and inventory management, hotels and resorts adopted LMR for guest services, hospitals implemented LMR for emergency response and patient care coordination, and large corporate campuses used LMR for security and facilities management. The reliability, range, and customizability of LMR systems made them indispensable for many large business operations, especially those requiring instant, one-to-many communications. Businesses with deployed teams could now communicate more effectively and efficiently.  

FRS Viability in Business

So why is FRS still available? Even though Family Radio Service is widely known as a consumer-grade communication system intended mostly for personal and family use, it remains a viable option for many business operations. The caveat is that FRS radios utilize public channels, so anyone can be on your channel—limiting privacy and making them more susceptible to crosstalk. However, since they do not require a license, these systems are easier to deploy and simpler to manage and are a great option in many business contexts. 

Operational Considerations 

Each industry comes with its own set of challenges, and choosing the correct two-way radio system includes a variety of factors to consider: 

• Scale of operations  
• Budgetary constraints  
• Required communication range  
• Need for advanced features  
• Regulatory compliance requirements  

LMR systems provide: 

• Better range and coverage 
• Superior audio quality 
• Advanced features for safety and efficiency 
• Durability for demanding environments 
• Improved scalability for growing organizations 
• Integration capabilities with other systems 

FRS radios offer: 

• Low-cost, license-free operation 
• Simplicity and ease of use 
• Adequate performance for small-scale, short-range applications 
• Universal capabilities with a variety of other radios 

Real World Use Cases 

RETAIL

LMR 

A large department store implements an LMR system to coordinate security, customer service, and inventory management across multiple floors and departments. The system's long-range capabilities enable effective instant communication between security personnel, floor managers, and loss prevention teams during critical incidents. 

FRS 

A boutique with a small retail space uses FRS radios for quick communication between sales associates during peak shopping hours. The lightweight, easy-to-use devices allow staff to quickly check inventory, call for assistance, or alert managers about customer needs without disrupting the shopping environment. 

DINING

LMR 

A high-end restaurant group equips its kitchen and service staff with LMR radios to streamline communication across multiple kitchen stations, dining areas, and back-of-house operations. The ruggedized radios withstand high-heat kitchen environments and potential spills, enabling chefs, servers, and management to coordinate complex food service with precision and speed. 

FRS  

A small café uses FRS radios for quick communication between front-of-house and back-of-house staff. Servers can easily communicate with bartenders and kitchen staff about orders, special requests, and timing, ensuring smooth service during busy lunch and dinner rushes. 

EVENTS

LMR 

A major music festival utilizes an LMR system to manage security, stage production, and logistics across a large outdoor venue. The system's robust construction withstands dusty conditions and potential rain, ensuring reliable communication throughout the event. 

FRS 

A small community fair uses FRS radios for basic coordination between volunteer staff. They are completely adequate for short-range communication in open areas if large obstructions are avoided. They are inexpensive and simple-to-use, so even seasonal employees can be comfortable using them. 

HOSPITALITY

LMR  

A large resort complex employs an LMR system to manage operations across multiple hotels, restaurants, and recreational facilities. The system uses IP67 waterproof handhelds since all staff are both indoors and outdoors, and offers a convenient docking system for employees to charge their radios when not in use.  

FRS

A small bed and breakfast uses FRS radios for communication between the front desk and housekeeping and facilities staff. While suitable for basic coordination in a small property, they lack the range and features needed for larger hotels or resorts with extensive grounds. 

The Right Choice for Your Team & Your Business 

Unlicensed radios offer a simple, easy-to-deploy solution that may be more convenient for smaller businesses, as they do not require a license or a specific frequency authorization. They have found a niche in small businesses and specific scenarios where their limitations are not prohibitive. It is often used as an entry-level solution or for businesses with smaller localized communication needs.  

Featuring a wider frequency band and larger power output, licensed radios offer increased range and coverage over their unlicensed counterparts. Additionally, a licensed radio system may offer increased privacy and much less crosstalk through better frequency monitoring when designated to your job site. For large warehouses, construction sites, and hospitality venues, a licensed radio may be ideal. Licensed radio solutions have remained the go-to choice for businesses requiring robust, wide-area coverage and advanced features.

For businesses prioritizing reliable communication, safety, and operational efficiency, investing in an LMR system is often the better choice, despite the higher initial cost. However, for small operations or occasional use, FRS radios may be sufficient. 

For help deciding which business communications solution is right for you, talk to one of our business radio experts by completing the form on this page.