Further on the E. Sounds like the Motorola MSI channel, some San Jose channels and a Sunnyvale PD Tac channel so far. All dispatch has been in the clear.
this is normal. The batwing uses encryption when setting up systems for their own use. The reasons (as far as I can see) are two fold:
First: They're demoing this system. Showing agencies and the powers that be, the capabilities and features of a system. So you're going to see all sorts of crap going on, you'll see encryption, data traffic, emergency triggers, patching, interconnect, i-call, the lot.
Second: Imagine the rumors that would get started if they're *just testing* and setting up a system, and a technician says something over the air like like "hey Larry, xxx isn't working, it looks like we're having connectivity issues" and it gets taken out of context when some scanner geek like me says something on a message board, or someone at an agency hears it? Suddenly "brand new multi million dollar radio system isn't working" type-rumors get started, unions get pissed off, supervisors and board members get involved and it becomes a HUGE mess.
All when in reality, someone didn't plug a network switch in or mis-configured a port, it's a simple mistake and it's fixed in 5 minutes. It doesn't mean that every radio on the system will be equipped with Encryption, it doesn't mean that entire agencies will be encrypted, it doesn't mean ANYTHING other than Motorola was using it.
Now I don't know if this is the official reason for the use of encryption by MSI when they're setting up a system, but I do know that it's Standard Procedure during setup and testing.
Now, for Phase II stuff: Until EVERY radio and EVERY console on a talkgroup is Phase II compliant, the talkgroup will remain Phase I. This means that until each agency replaces their Gold Elite consoles with the new Phase II consoles, you will be able to monitor them with older Phase I scanners. Phase II isn't system-wide. It's per talkgroup. My understanding from talking with Motorola Solutions folks is that If a talkgroup has all Phase II radios logged on and is set to allow Phase II, then it will be Phase II, but then if someone turns their Non Phase II radio on, and switches to that talkgroup, it will be Phase I until that radio gets off the talkgroup.
TL;DR: Just because Encryption is seen on a system during initial phases of development, doesn't mean it will be widespread or in use at all.