Abstract: A two-way radio system and method in which a virtual channel code is selected for a particular group of radios. On transmit, the transmitting radio searches for a free radio channel and begins to transmit the voice audio as well as the chosen virtual channel code when a free channel is found. Meanwhile, receiving radios continuously scan through all 14 radio channels. When a carrier is detected in a given radio channel, the receiver checks to see if the virtual channel code on that channel matches the selected tone. If the tone matches, the squelch is opened otherwise the receiver continues to scan.