Nevertheless, let's get some numbers on the page to see if I'm misunderstanding the subject.
Here's a rough link budget with some estimates
TX/RX antenna gain is around 0dBi (seems reasonable [1]) TX power = 16mW = 12dBm [2] RX sensitivity = -90dBm (personally, better than -100dBm seems aggressive)
Roughly, our link budget formula can be... Path loss = TX power + TX gain + RX gain - Rx power [3] Path loss = 102dB
Ideal free space loss over 1km at 900MHz is around 91dB [4]. Therefore, we have about 10dB margin in our link budget to transmit 1km. We also have a few dB margin in the antenna and receive sensitivity estimate.
[1] http://store.rfdesign.com.au/antenna-900mhz-2dbi-monopole-rp... [2] http://www.cpcstech.com/dbm-to-watt-conversion-information.h... [3] http://skypilot.trilliantinc.com/pdf/link_budget.pdf [4] http://en.wikipedia.org/wiki/Path_loss