I am under the impression that if aircraft power is lost (alternator/generator plus weak aircraft battery) the engine keeps running on the mags, but the instrument panel GPS will cease to send current location data to the emergency locator beacon, the aircraft continues on and when the plane crashes, it sends location coordinates for back when the instrument panel GPS stopped sending data to the 406 locator beacon. That can be quite a ways....
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http://www.elt406.net/ 406ELT w/ GPS continually upgrades its internal GPS position as long the airplane power source is supplying it with power; therefore, it knows where it is at all times. Not a lot of help for non-electrically powered aircraft.
Once the intertia switch is tripped it will send the latest GPS location and then try to find the satellites and refine the location with the following bursts if the GPS birds can be found. Once power is lost the internal battery will update position and send bursts to the 406 satellites the same way other internal GPS units work.
I initially was going to purchase the Pointer SkyHunter 406, until we figured out that it does not look for the GPS satellites until the inertia or emergency switch is tripped. As long as the GPS antenna has a good look at the sky, read that as the plane comes to rest relatively upright and the antenna is undamaged, the location will be downloaded and the message to the 406 SAR birds will have your location. My concerns with this is if the plane comes down such that the GPS antenna is pointing at the side of a hill or ground the unit will not find the GPS birds.
In addition I fly a rag and tube ac w/ steel fuselage cage. I wanted to mount my antennas inside the fuselage cage in an upright position so they could see the sky and be protected by the cage. The antennae are not much use if they are stripped off the plane. I could not readily mount the Pointer antenna upright in the rear of my plane while the E.L.T. is much shorter and is easily mounted upright and the 406 antenna has a 270 degree "view" which means other than completely upside down odds are pretty good that the antenna could get the message with the last GPS position out to the world.
If I am going to pay the $$ for an internal GPS system I figured I wanted to have the best chance possible to get the message out to SAR with the best positional data possible.
Each plane has its own mounting needs and each pilot has their own requirements, but it always helps to keep in mind how the system will actually help to save your butt when the fit hits the shan.
Big thanks to Tim Boughner for pointing out the differences in the functionality of the various 406 internal GPS units.
The 406 ELT w/ internal GPS is a big investment for something you hope you will never use.
TD