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Some ads promote SMRs as an alternative to cellular telephone systems.
The FCC issues licenses for SMR systems consisting of one or more channel pairs. SMR systems have significant technological limitations that may hamper their commercial competitiveness with cellular telephone systems. Prospective investors should consider some limiting aspects of SMR systems as telephone systems. First, a conventional SMR system must be combined with other SMR systems into a network to achieve sufficient transmission capacity. In addition, to compete with the call-carrying capacity of cellular telephone systems, an SMR would have to be upgraded with more advanced digital equipment that could cost in excess of several million dollars.