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Here is some of the basic information on the history of the Family Rdio Service system.

From Wikipedia, the free encyclopedia

The Family Radio Service (FRS) is an
improved walkie talkie system authorized in the United States since
1996. This personal radio service uses channelized frequencies in the
ultra high frequency (UHF) band, and so does not suffer the
interference effects found on citizens' band (CB) at 27 MHz, or the
49 MHz band also used by cordless phones, toys, and baby monitors.
FRS uses frequency modulation (FM) instead of amplitude modulation
(AM). Since the UHF band has different radio propagation
characteristics, the short range use of FRS may be more reliable than
license-free radios operating in the HF CB band.

Initially proposed by Radio Shack in
1994 for use by families, FRS has also seen significant adoption by
business interests, as an unlicensed, low-cost alternative to the
business band.

Technical information

FRS radios are limited to 500
milliwatts in the U.S., according to FCC regulations. Channels 1 to 7
are shared with low-power interstitial channels of GMRS, the General
Mobile Radio Service. A license is required for those channels only
if the power output is over FRS limits, up to GMRS limits. Unlike
Citizens' Band (CB) radios, FRS radios frequently have provisions for
using sub-audible tone squelch (CTCSS and DCS) codes, filtering out
unwanted chatter from other users on the same frequency. Although
these codes are sometimes called “privacy codes” or
“private line codes” (PL codes), they offer no protection
from eavesdropping and are only intended to help share busy channels.
Tone codes also do nothing to prevent desired transmissions from
being swamped by stronger signals having a different code.

FRS stations on channels 1 through 7
may communicate with GMRS stations on those channels; the GMRS
stations may use up to 5 watts of power, while the FRS stations are
restricted to 0.5 watts.

The use of duplex radio repeaters and
interconnects to the telephone network are prohibited under FRS
rules, unlike in GMRS (where repeaters, but not telephone
interconnects, are permitted), and the Amateur Radio Service. FRS
radios must use only permanently-attached antennas. This limitation
intentionally restricts the range of communications, and promotes
sharing of the available channels.

FRS manufacturers generally claim an
effective range of 3 km (2 miles) or more, but actual performance is
limited by the physics of propagation. The presence of large
buildings can reduce range. Under exceptional conditions, such as
hilltop to hilltop, communication is possible over 50 km (30 miles)
or more. Under normal conditions, however, with line-of-sight blocked
by a few buildings or trees, FRS generally has an effective range of
0.5 to 1.5 km (1/3 to 1 mile).

FRS/GMRS Dual Service Radios

Recently, hybrid FRS/GMRS consumer
radios have been introduced that have 22 channels. Many of these
radios have been certified for unlicensed operation (on the 14 FRS
frequencies) under FRS rules. [1]

The FCC rules and statements regarding
the use of hybrid radios on channels 1-7 stipulate the need for GMRS
licensing only when operating under the rules that apply to the GMRS.
Many hybrid radios have an ERP that is lower than 0.5 watts on
channels 1-7, or can be set by the user to operate at low power on
these channels. This allows hybrid radios to be used under the
license free FRS rules if the ERP is less than 0.5 watts AND the unit
is certified for FRS operation on these frequencies.

Owners of dual-service radios should be
aware that it is unlawful to operate on channels 15-22 at any power
level without holding a valid, FCC-issued GMRS license in the United
States of America. In practice, however, many radio manufacturers do
not make this distinction sufficiently clear to customers.
Consequently, this often leads to unlawful interference to GMRS
licensees by others that erroneously believe they are simply using
additional FRS channels. As GMRS licenses cost money to obtain, such
interference can often be a source of frustration for duly-licensed
operators.

Channels 8-14 are reserved exclusively
for the FRS, and GMRS operation is not allowed on these channels.

Channels 15-22 are reserved exclusively
for GMRS, and FRS operation is not allowed on these channels.

Summary

FRS radios are currently the most economical means of putting a two ways radio system into place.

The advantages are:

1. Low price per unit
2. No license is required to operate.
3. Unit can typically work on standard or rechargeable batteries
4. Better units have a CTCSS codes- private line feature to filter out other users on the channel
5. Ear buds are available

Disadvantages

1. The sound is not as clear as a quality business band radio
2. If you are in a heavily populated area it may be difficult to find a unused channel
3. The CTCSS filter out others but they can still hear you
4. If you use the more powerful GMRS, a license is required before use.
5. Owners of dual-service radios should be
   aware that it is unlawful to operate on channels 15-22

I will add some information on the business band radios later.

Jack