The 4.10m User Guide says that "The VHF signal was mostly line-of-sight. If the pilot could hear two Morse code letters, he would know his relative position to the carrier. The double modulation would make it difficult for an enemy to easily detect the Morse content of the signal. The VHF signal was reportedly reliable to about 40 to 70 miles out for an aircraft at 10,000 feet and further at higher altitudes". There are two different issues though. You may need line-of-sight to receive signals on this frequency at all, but signal strength is also significant - and I doubt that the USN would be keen on sending out signals at a strength higher than they considered necessary for aircraft navigation.
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