The AN/PRC-163 is a dual-channel, multiband software-defined tactical handheld radio designed to provide secure voice, data and situational-awareness communications for dismounted soldiers and small tactical teams. Its two independent radio channels allow simultaneous operation across VHF/UHF LOS, SATCOM and MANET networks, including the ability to crossband communications between otherwise separate networks.

The radio effectively combines several capabilities into a single handheld platform, including:

• Dual-channel tactical radio supporting simultaneous communications.
• VHF/UHF line-of-sight communications, with channel 1 covering approximately 30–512 MHz depending on configuration.
• UHF SATCOM capability, including MUOS-related functionality.
• Wideband MANET networking, including TSM-X™, ANW2® and Wraith™ waveforms.
• Secure voice and data communications, with support for NSA Type 1 encryption architectures.
• Crossbanding, allowing communications to be relayed between different networks and waveforms.
• Integrated GPS, with SAASM or commercial GPS options.
• ISR capability, with an optional mission module providing reception of full-motion video and other intelligence data.
• Network connectivity to external computing devices through USB and Ethernet interfaces.