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payment applications [as with road or bridge tolls] there are<br />

good reasons to limit the read range and maximize the tag's<br />

security.'<br />

A lack of adequate ROI data was the third-highest ranked<br />

reason for non-deployment according to a survey of 185 retail<br />

organizations conducted by New York-based ABI Research in<br />

mid-2008. 'In times of economic slowdown, a quick positive<br />

return on investment is especially important to potential<br />

RFID users,' said practice director Michael Liard. 'We asked<br />

respondents about their hopes and expectations for ROI on<br />

'"Unit prices have certainly dropped<br />

dramatically from dollars to a few<br />

cents each, but rock-bottom prices are<br />

not everything, neither are long-term<br />

agreements. People remain cautious"<br />

their RFID investments. While a substantial majority saw 12-24<br />

months as a reasonable expectation, more than one third<br />

anticipated a return within the first year.'<br />

Victor Vega, marketing director of California-based Alien<br />

Technology, remembers when RFID chips cost $12 each in<br />

the mid-1990s when the company was founded: 'Unit prices<br />

have certainly dropped dramatically from dollars to a few<br />

cents each, but rock-bottom prices are not everything, neither<br />

are long-term agreements. People remain cautious. Some<br />

Some RFID basics<br />

Radio frequency ID tags use inlays comprising an integrated circuit, or<br />

silicon chip, and an antenna. They allow encoded data to be remotely<br />

received and transmitted to a hand-held or fixed-mount reader (or<br />

scanner), importantly beyond the line of sight of the recording method<br />

and for more than one item at a time. The reader decodes the data for<br />

processing by a host computer. Inlays have many different designs<br />

and sizes to suit specific applications. The more sophisticated types<br />

allow users to both read and write data. Chipless, chip-based and<br />

electromagnetic ID tags, commonly called 'smart labeling', are linked<br />

with RFID technology.<br />

High-frequency (HF) tags have a near-field sensitivity of around 5<br />

feet (1.5 m), which suits many everyday applications, and a global<br />

operating frequency of 13.56 MHz. Lately, more powerful ultra-high<br />

frequency (UHF) tags with longer reading ranges have become more<br />

prominent. They operate with data communication rates from 860<br />

to 960 MHz. The usual passive types are powered by the reader, as<br />

opposed to active tags which require an internal battery. UHF tags are<br />

increasingly associated with the Gen 2 protocol, a user-driven standard<br />

from EPCglobal (formally called Electronic Product Code Class 1<br />

Generation 2 and ISO approved in 2006).<br />

may 2009 | L&L

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