Study
Purpose of the Study
The intention of this study is to analyze the current US RF communications market in terms of technical/mission requirements and competitors in order to determine if there is a viable business opportunity for Elbit to become a key player in the US military market as radio house. Through gap analysis, the approach will be to evaluate the present market space and determine the current and potential future technical requirement short falls that are not being provided by today’s major competitors. The output of the aforementioned study will be to make recommendations to Elbit Systems of America (ESA) as to whether or not the company can become a radio house in the US market. On the presumption that ESA can become a radio house in the US market, the study will define the business strategy, investments, marketing plan, technology roadmap and strategic plan to accomplish this objective. The key core competency areas to be evaluated are: technology, design, manufacturing and marketing.
Executive Summary
Elbit Systems of America (ESA) Tallahassee Operations (formally Talla-Com Industries) has been manufacturing and marketing communication products across the frequency range of 2 MHz to 2 GHz since 1988. Approximately 75% of ESA Tallahassee Operations’ business base is for defense and government applications. The remaining 25% of the business base is with commercial customers. ESA Tallahassee Operations, parent company, Tadiran Communications, Ltd. (subsidiary of Elbit Systems, Ltd., Israel), is an international corporation based in Israel. It employs 700 people worldwide, and its annual sales exceed 220 million dollars. As a subsidiary of ESA Elbit Systems Ltd., ESA Tallahassee Operations develops markets and manufactures its own distinct product offerings and offers U.S. Marketing and manufacturing services to Elbit Systems, Ltd. Additionally, ESA Tallahassee Operations has a secure products facility at a subsidiary company, which is also located in Tallahassee. This company is Elbit Systems of America (ESA) C4I Solutions (formally (Talla-Tech, Inc.), and is located near ESA Tallahassee Operations. The facility is cleared at the secret level and operates under a Special Security Agreement (SSA) approved by the Defense Security Agency. ESA C4I Solutions’ business base is a 100% military program, and the company performs prime contracts for the Department of Defense and subcontracts for U.S. prime contractors.
Tadiran Communications designed and manufactured the PRC-710MB which is a multi-band military handheld radio for advanced voice and data communications. With excellent spectral purity, this frequency hopping radio guarantees superior tactical communications for lethal missions in adverse weather, dense electromagnetic and operational environments. It provides continuous AM and FM frequency coverage throughout the entire 30 MHz – 512 MHz range to facilitate communications between ground, airborne and naval forces.
The PRC-710MB radio communications set is designed especially for Special Forces, air force and naval liaison teams, facilitating essential inter-communications between ground, airborne and naval forces. To ensure connectivity between multiple frequency bands and modulation techniques, the software controlled system uses wide-band radio-frequency modules covering 30-512 MHz, with adaptable antennae matching systems, built-in digital encryption (COMS EC) and navigation (GPS) support. The set supports special operating modes such as Scan, Hail, SELCALL, Beacon, ECCM etc. At a weight of only 0.9kg, including battery and carrying case, PRC-710MB is considered the lightest multi-band radio in the market. The new radio is interoperable with Tadiran's CNR-900, PRC-710 combat net radios, as well as ground, airborne and naval UHF systems.
Contemporary Communications
The RF communications electromagnetic spectrum ranges from ELF (3HZ-30Hz) to EHF (30GHz-300GHz). The areas of primary interest are in the military tactical air/ground communications that are in the VHF/UHF (30Mhz to 3000Mhz) frequency domain. This does not preclude no interest for other applications in the primary frequency domain (e.g.; satellite and point-to-point microwave). According to Bradley J. Curran, Frost and Sullivan Industry Analyst (Military & Aerospace Electronics, 09/23/05), operations in Iraq and Afghanistan, force transformation that incorporates Network Centric Warfare (NCW) doctrine and communications infrastructure upgrade are market factor drivers. Satellite communications can provide transmission speed, wide bandwidth, and remote accessibility over the horizon (Curran, 2005).
In the mid-1970’s the US Army began the development of a new generation of tactical radios entitled Single-Channel Ground and Airborne Radio Subsystem (SINCGARS). This system is in the VHF (30-90MHz) frequency domain. The system was designed to provide digital communications down to the platoon level and provide frequency hopping to protect against the enemy (e.g.; Soviet threat) Electronic Counter Measures (ECM) (Major G.E. Washburn and Col Kline, SINCGARS-V, GlobalSecurity.org, 1985). The Soviet ECM initiative was part of the Radio-Electronic Combat (REC) Program (Washburn, Kline, 1998). The Soviet REC program was based upon the following equal 3 factors. If a system can be (1/3) destroyed and (1/3) disrupted (jamming) the remaining (1/3) of the system will collapse under its own weight (Jack Regan, Westinghouse Defense International, 1983). The Soviet ECM (jamming) initiative was the part of REC designed to disrupt communications.
As part of the DoD transformational program effort the follow-on tactical radio program to SINCGARS is the Joint Tactical radio System (JTRS) program. This is a DoD-wide initiative to develop a family of revolutionary software tactical radios that will provide the warfighter with voice, data and video communications in addition to being interoperable across the joint service battlespace (Joint Tactical Radio System…, JTRS Army, 2008). The current radio system (e.g.; SINCGARS) is not interoperable in all services and does not have the bandwidth to meet the future communication requirements. Within the JTRS scope is the Programmable Modular Communications System (PMCS) that with software will generate and process waveforms, encryption, signal processing and other major communications functions across the joint service spectrum of environments (JTRS Army, 2008). JTRS will support multi-band, multi-mode and multiple channel radios supporting advanced narrowband and wideband waveform capabilities with integrated computer networking features. (Ibid.) This is a family of radios, with open physical and software architectures, operating in the frequency domain from 2-2000Mhz
JTRS is being developed in parts referred to clusters as follows:
“The Army-led Cluster 1 is developing, JTR sets for the Army and marine Corp. ground vehicular, Air Force tactical Control Party ground vehicular, and the Army rotary wing applications. The Special Operations Command-led Cluster 2 is upgrading an existing handheld radio, the Multiband Inter/Intra Team radio, to SCA (Software Communications Architecture) compliance. Cluster 3 and 4 have been combined to form a new program, Airborne Fixed-Station (AMF) JTRS. The Army-led Cluster 5 program is developing handheld, manpack, and small form-fit sets suitable for embedding in the Army’s Future Combat Systems and other platforms requiring a small radio. A cluster for space applications is also being considered.” (Ibid.)
The current family of systems includes the following applications: navigation, positioning/location, identification. Air to ground (air to air/ground to ground) and satcom. The JTRS common open standards architecture and technology base will incorporate legacy waveforms, commercial waveforms and new military waveforms into a joint solution. The operational domains of this joint solution will integrate airborne, ground forces (handheld/dismounted/vehicular) and maritime/fixed station (AMF). (JTRS Program Status, JTRS JPO, 01/15/03).
The waveforms which is all the functionality between the antenna and the user consists of hardware (HW) and software(SW) elements. From the antenna, the HW consists of RF (filters, tuners, amps), ADC/Modem (Analog/Digital converter). The SW consists Black Side (Modulator/Demodulator, Intelever/Deinteliver, Forward Error Correction), Infosec (Encryption/Decryption), Red Side (Routing, User Interface). There is an HW/SW overlap with ADC/Modem. (Ibid.)
The JTRS direction regarding characteristics is as follows: Radio Architecture – software radio based on common architecture for portability; Frequency bands/Channels – multiple frequency bands/multiple channels; Services – voice, data and data; Interfaces – flexible, MIL-STD, commercial (serial, Ethernet); Technology – general purpose processors, DSPs (digital signal processor), and FPGAs (field programmable gate array); Upgrades – software upgrades; Crypto/Algorithms – embedded/programmable. (Ibid.)
The following is a sample of near term radios currently in the marketplace
AN/PRC-148 Multi Band Inter/Intra Theater Radio (Thales) Operates (AM & FM) in the 30-512 MHz, embedded Type security, and will be interoperable with SINCGARS and HAVEQUICK II in the single channel mode and while in ECCM frequency hopping mode.
Supports small units (platoon, squad, team)
ICOM IC F33/43 Portable UHF Radio (ICOM America) Operates in F33 VHF (136-174 MHZ) or F43 UHF (400-520 MHz)
Programmable in 256 different channels with variable power output of up to 4 watts. Data Encryption Standard (DES) card for secure communications.
AN/PRC-150 High Frequency Manpack Radio (Harris) 2-60 MHz frequency range, half duplex HF and VHF tactical radio.
Single Sideband modulation (Upper or Lower Side Band).
Automatic Link establishment (ALE) compatible with Mil-STD 188-141 ALE
ANPRC 117F Multiband Multi-Mission Radio (Harris) 30-512 MHz, embedded COMSEC, SATCOM and ECCM
Interoperable with SINCGARS and a host to other radios.
Configurable for MANPACK, interoperable with legacy encryption systems and acts as a translator between otherwise incompatible radios.
Overview of the Warfighter Information Network – Tactical (WIN-T) which is the Army’s communication system that provides reliable, secure and seamless video, data, voice and imagery to the respective combat components. The Future Combat Systems (FSC), Joint Tactical Radio System (JTRS), satellite terminals and over the DoD C4I for seamless DoD Global Information grid (GIG). The WIN-T outmodes Mobile Subscriber Equipment (MSE) and the Tri-Services Tactical Communications (TRI-TAC) and builds upon the Joint Network Node (JNN) functionally. “WIN-T allows the Army commanders, other network users, at all echelons to exchange information from multiple communication sources such as wired, wireless, computers and video terminals in a seamless manner. The Navy version of WIN-T is NMCI (Navy Marine Corp Internet)/NGEN (Next Generation Enterprise Network).
“WIN-T will be the Army’s integrating battlefield communications network, providing warfighters fast, secure, and mobile access to the U.S. Defense Department’s Global Information Grid”. (Forecast International, C4I Market Analysis, April 2008)
“In June 2007, the Army announced it was restructuring and accelerating the WIN-T program and organizing it into four major increments. The former Joint Network Node (JNN) is now WIN-T Increment One, which will enhance the existing joint networking and satellite communications capabilities currently deployed in Iraq and Afghanistan”. (Ibid.)
The concept of net-centric transformation is defined under the Army Battle Command System (ABCS) categorized under the Net-Centric Enterprise Service category as follows:
“ The Global Information Grid (GIG) Bandwidth Expansion Program. Provides a secure, robust Optical Internet protocol network.
Joint tactical Radio System. A family of software-reprogrammable radios based upon open communications architecture that will provide interoperable, tactical wideband Internet protocol communication capabilities.
Wide-Band Satellite Communications. Provides ubiquitous communications with optical quality bandwidth to mobile and tactical users….” (John P. Stenbit, “Horizontal Fusion: Enabling Net-Centric Operations and Warfare,” Crosstalk: The journal of Software Engineering, January 2004.) (Cited as endnote 20 – LTC David M. Moore, USA, Master of Strategic Studies Degree Thesis, US Army War College, March 4, 2006)
In general, the objective of communications for the FCS is to provide seamless transmission of voice, video, data and imagery over multiple protocols including the RF Electromagnetic Spectrum, land lines, wireless and IP backbone (e.g.; VoIP) in a seamless manner to all DoD combat and support components at all levels of each respective military element. (Refer to the OSI and TCP/IP for the IP protocol layers). This initiative is referred to a transformation to a Network Centric Warfare (NCW) battle space [Net-Centric Enterprise – ubiquitous communications (Stenbit, 2004)].
Purpose of the Study
The intention of this study is to analyze the current US RF communications market in terms of technical/mission requirements and competitors in order to determine if there is a viable business opportunity for Elbit to become a key player in the US military market as radio house. Through gap analysis, the approach will be to evaluate the present market space and determine the current and potential future technical requirement short falls that are not being provided by today’s major competitors. The output of the aforementioned study will be to make recommendations to Elbit Systems of America (ESA) as to whether or not the company can become a radio house in the US market. On the presumption that ESA can become a radio house in the US market, the study will define the business strategy, investments, marketing plan, technology roadmap and strategic plan to accomplish this objective. The key core competency areas to be evaluated are: technology, design, manufacturing and marketing.
Executive Summary
Elbit Systems of America (ESA) Tallahassee Operations (formally Talla-Com Industries) has been manufacturing and marketing communication products across the frequency range of 2 MHz to 2 GHz since 1988. Approximately 75% of ESA Tallahassee Operations’ business base is for defense and government applications. The remaining 25% of the business base is with commercial customers. ESA Tallahassee Operations, parent company, Tadiran Communications, Ltd. (subsidiary of Elbit Systems, Ltd., Israel), is an international corporation based in Israel. It employs 700 people worldwide, and its annual sales exceed 220 million dollars. As a subsidiary of ESA Elbit Systems Ltd., ESA Tallahassee Operations develops markets and manufactures its own distinct product offerings and offers U.S. Marketing and manufacturing services to Elbit Systems, Ltd. Additionally, ESA Tallahassee Operations has a secure products facility at a subsidiary company, which is also located in Tallahassee. This company is Elbit Systems of America (ESA) C4I Solutions (formally (Talla-Tech, Inc.), and is located near ESA Tallahassee Operations. The facility is cleared at the secret level and operates under a Special Security Agreement (SSA) approved by the Defense Security Agency. ESA C4I Solutions’ business base is a 100% military program, and the company performs prime contracts for the Department of Defense and subcontracts for U.S. prime contractors.
Tadiran Communications designed and manufactured the PRC-710MB which is a multi-band military handheld radio for advanced voice and data communications. With excellent spectral purity, this frequency hopping radio guarantees superior tactical communications for lethal missions in adverse weather, dense electromagnetic and operational environments. It provides continuous AM and FM frequency coverage throughout the entire 30 MHz – 512 MHz range to facilitate communications between ground, airborne and naval forces.
The PRC-710MB radio communications set is designed especially for Special Forces, air force and naval liaison teams, facilitating essential inter-communications between ground, airborne and naval forces. To ensure connectivity between multiple frequency bands and modulation techniques, the software controlled system uses wide-band radio-frequency modules covering 30-512 MHz, with adaptable antennae matching systems, built-in digital encryption (COMS EC) and navigation (GPS) support. The set supports special operating modes such as Scan, Hail, SELCALL, Beacon, ECCM etc. At a weight of only 0.9kg, including battery and carrying case, PRC-710MB is considered the lightest multi-band radio in the market. The new radio is interoperable with Tadiran's CNR-900, PRC-710 combat net radios, as well as ground, airborne and naval UHF systems.
Contemporary Communications
The RF communications electromagnetic spectrum ranges from ELF (3HZ-30Hz) to EHF (30GHz-300GHz). The areas of primary interest are in the military tactical air/ground communications that are in the VHF/UHF (30Mhz to 3000Mhz) frequency domain. This does not preclude no interest for other applications in the primary frequency domain (e.g.; satellite and point-to-point microwave). According to Bradley J. Curran, Frost and Sullivan Industry Analyst (Military & Aerospace Electronics, 09/23/05), operations in Iraq and Afghanistan, force transformation that incorporates Network Centric Warfare (NCW) doctrine and communications infrastructure upgrade are market factor drivers. Satellite communications can provide transmission speed, wide bandwidth, and remote accessibility over the horizon (Curran, 2005).
In the mid-1970’s the US Army began the development of a new generation of tactical radios entitled Single-Channel Ground and Airborne Radio Subsystem (SINCGARS). This system is in the VHF (30-90MHz) frequency domain. The system was designed to provide digital communications down to the platoon level and provide frequency hopping to protect against the enemy (e.g.; Soviet threat) Electronic Counter Measures (ECM) (Major G.E. Washburn and Col Kline, SINCGARS-V, GlobalSecurity.org, 1985). The Soviet ECM initiative was part of the Radio-Electronic Combat (REC) Program (Washburn, Kline, 1998). The Soviet REC program was based upon the following equal 3 factors. If a system can be (1/3) destroyed and (1/3) disrupted (jamming) the remaining (1/3) of the system will collapse under its own weight (Jack Regan, Westinghouse Defense International, 1983). The Soviet ECM (jamming) initiative was the part of REC designed to disrupt communications.
As part of the DoD transformational program effort the follow-on tactical radio program to SINCGARS is the Joint Tactical radio System (JTRS) program. This is a DoD-wide initiative to develop a family of revolutionary software tactical radios that will provide the warfighter with voice, data and video communications in addition to being interoperable across the joint service battlespace (Joint Tactical Radio System…, JTRS Army, 2008). The current radio system (e.g.; SINCGARS) is not interoperable in all services and does not have the bandwidth to meet the future communication requirements. Within the JTRS scope is the Programmable Modular Communications System (PMCS) that with software will generate and process waveforms, encryption, signal processing and other major communications functions across the joint service spectrum of environments (JTRS Army, 2008). JTRS will support multi-band, multi-mode and multiple channel radios supporting advanced narrowband and wideband waveform capabilities with integrated computer networking features. (Ibid.) This is a family of radios, with open physical and software architectures, operating in the frequency domain from 2-2000Mhz
JTRS is being developed in parts referred to clusters as follows:
“The Army-led Cluster 1 is developing, JTR sets for the Army and marine Corp. ground vehicular, Air Force tactical Control Party ground vehicular, and the Army rotary wing applications. The Special Operations Command-led Cluster 2 is upgrading an existing handheld radio, the Multiband Inter/Intra Team radio, to SCA (Software Communications Architecture) compliance. Cluster 3 and 4 have been combined to form a new program, Airborne Fixed-Station (AMF) JTRS. The Army-led Cluster 5 program is developing handheld, manpack, and small form-fit sets suitable for embedding in the Army’s Future Combat Systems and other platforms requiring a small radio. A cluster for space applications is also being considered.” (Ibid.)
The current family of systems includes the following applications: navigation, positioning/location, identification. Air to ground (air to air/ground to ground) and satcom. The JTRS common open standards architecture and technology base will incorporate legacy waveforms, commercial waveforms and new military waveforms into a joint solution. The operational domains of this joint solution will integrate airborne, ground forces (handheld/dismounted/vehicular) and maritime/fixed station (AMF). (JTRS Program Status, JTRS JPO, 01/15/03).
The waveforms which is all the functionality between the antenna and the user consists of hardware (HW) and software(SW) elements. From the antenna, the HW consists of RF (filters, tuners, amps), ADC/Modem (Analog/Digital converter). The SW consists Black Side (Modulator/Demodulator, Intelever/Deinteliver, Forward Error Correction), Infosec (Encryption/Decryption), Red Side (Routing, User Interface). There is an HW/SW overlap with ADC/Modem. (Ibid.)
The JTRS direction regarding characteristics is as follows: Radio Architecture – software radio based on common architecture for portability; Frequency bands/Channels – multiple frequency bands/multiple channels; Services – voice, data and data; Interfaces – flexible, MIL-STD, commercial (serial, Ethernet); Technology – general purpose processors, DSPs (digital signal processor), and FPGAs (field programmable gate array); Upgrades – software upgrades; Crypto/Algorithms – embedded/programmable. (Ibid.)
The following is a sample of near term radios currently in the marketplace
AN/PRC-148 Multi Band Inter/Intra Theater Radio (Thales) Operates (AM & FM) in the 30-512 MHz, embedded Type security, and will be interoperable with SINCGARS and HAVEQUICK II in the single channel mode and while in ECCM frequency hopping mode.
Supports small units (platoon, squad, team)
ICOM IC F33/43 Portable UHF Radio (ICOM America) Operates in F33 VHF (136-174 MHZ) or F43 UHF (400-520 MHz)
Programmable in 256 different channels with variable power output of up to 4 watts. Data Encryption Standard (DES) card for secure communications.
AN/PRC-150 High Frequency Manpack Radio (Harris) 2-60 MHz frequency range, half duplex HF and VHF tactical radio.
Single Sideband modulation (Upper or Lower Side Band).
Automatic Link establishment (ALE) compatible with Mil-STD 188-141 ALE
ANPRC 117F Multiband Multi-Mission Radio (Harris) 30-512 MHz, embedded COMSEC, SATCOM and ECCM
Interoperable with SINCGARS and a host to other radios.
Configurable for MANPACK, interoperable with legacy encryption systems and acts as a translator between otherwise incompatible radios.
Overview of the Warfighter Information Network – Tactical (WIN-T) which is the Army’s communication system that provides reliable, secure and seamless video, data, voice and imagery to the respective combat components. The Future Combat Systems (FSC), Joint Tactical Radio System (JTRS), satellite terminals and over the DoD C4I for seamless DoD Global Information grid (GIG). The WIN-T outmodes Mobile Subscriber Equipment (MSE) and the Tri-Services Tactical Communications (TRI-TAC) and builds upon the Joint Network Node (JNN) functionally. “WIN-T allows the Army commanders, other network users, at all echelons to exchange information from multiple communication sources such as wired, wireless, computers and video terminals in a seamless manner. The Navy version of WIN-T is NMCI (Navy Marine Corp Internet)/NGEN (Next Generation Enterprise Network).
“WIN-T will be the Army’s integrating battlefield communications network, providing warfighters fast, secure, and mobile access to the U.S. Defense Department’s Global Information Grid”. (Forecast International, C4I Market Analysis, April 2008)
“In June 2007, the Army announced it was restructuring and accelerating the WIN-T program and organizing it into four major increments. The former Joint Network Node (JNN) is now WIN-T Increment One, which will enhance the existing joint networking and satellite communications capabilities currently deployed in Iraq and Afghanistan”. (Ibid.)
The concept of net-centric transformation is defined under the Army Battle Command System (ABCS) categorized under the Net-Centric Enterprise Service category as follows:
“ The Global Information Grid (GIG) Bandwidth Expansion Program. Provides a secure, robust Optical Internet protocol network.
Joint tactical Radio System. A family of software-reprogrammable radios based upon open communications architecture that will provide interoperable, tactical wideband Internet protocol communication capabilities.
Wide-Band Satellite Communications. Provides ubiquitous communications with optical quality bandwidth to mobile and tactical users….” (John P. Stenbit, “Horizontal Fusion: Enabling Net-Centric Operations and Warfare,” Crosstalk: The journal of Software Engineering, January 2004.) (Cited as endnote 20 – LTC David M. Moore, USA, Master of Strategic Studies Degree Thesis, US Army War College, March 4, 2006)
In general, the objective of communications for the FCS is to provide seamless transmission of voice, video, data and imagery over multiple protocols including the RF Electromagnetic Spectrum, land lines, wireless and IP backbone (e.g.; VoIP) in a seamless manner to all DoD combat and support components at all levels of each respective military element. (Refer to the OSI and TCP/IP for the IP protocol layers). This initiative is referred to a transformation to a Network Centric Warfare (NCW) battle space [Net-Centric Enterprise – ubiquitous communications (Stenbit, 2004)].