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We have been using a Funkwerk (formerly Filser) Hot Air Balloon transponder since early in 2008.
Our system consists of a Funkwerk / Filser TRT 800H Mode A, C and S Class 1 Transponder, capable of supporting 8 ICAO aircraft codes, the GS7 leather covered aluminum case with built in 12V battery and standard 16cm antenna.
We found that the standard antenna on top to the housing is not ideal in a balloon basket and exposed during landings. We much prefer the SP1090-4 antenna (4m cable) which we have attached to the outside of our scoop with some Velcro.
The system can be put together on line from the Funkwerk website.
The TRT800H Class 1 Transponder has square dimensions of 57mm and is 160mm long, and weighs 570 g. Power consumption is approximately 200mA in neutral mode and ,750mA under highest interrogation.
Funkwerk also offer a slightly cheaper TRT800 Class 2 transponder, which is suitable for most balloon flights. This is limited to a maximum altitude of 15000 ft.