Europe’s view of RFID – “a lot of interest but no takers!” But is that really so?

Editor's Note: Here's a view of the European RFID situation from one who knows -- Joe Longo -- since it's his beat at Loftware as the Company's International Sales Executive - EMEA. Joe's contact into (and the resources he used for his contribution today) are at the conclusion of his piece. Thank's Joe for this update today.

There is a lot of discussion in Europe over RFID. Some view it as a lot of “hype” and others say that it will take 10 to 15 years before widespread acceptance. But a key question that all Europeans are asking, ‘What is the Price of RFID today, and where will it settle before it really takes off?’

In part of a March 10th Reuters report Europe is at 14 euro cents mark but it needs to move to the 5 euro cents mark to be most attractive. Ian Furlong, Mgr of Intel’s Central Europe, said the price of RFID tags was “rapidly falling towards the 5 euro cent mark. As a result, demand from a variety of industries will increase”.

The report also noted that the costs of producing the chips for RFID are still not dropping at a rate where RFID tag price points need to be. All agree that this is taking longer than expected. But European industries (such as retail, pharmaceuticals, governments, logistics, airlines and manufacturing) in which tracking goods are crucial are already using RFID in pilots and small implementation projects, and other studies.

And now governments are taking a keener interest. Viviane Reding, European Commissioner for Information Society and Media, said “The time for action is now”. She recently spoke at the CeBIT in Hanover, Germany. The CeBIT is the world’s biggest tech and telecom fair. She goes on to say, “but we will only get the productivity gains (RFID) offers if we quickly overcome key barriers as regards incompatible standards and inadequate frequency allocation. This is key for enabling European as well as global interoperability of RFID systems”.

So with lower chip costs, lower RFID tag prices, government involvement in standards and frequency allocation, better understanding of ROI, and widespread interest among industry leaders will all help Europe move closer to widespread adoption of RFID. Will this be sooner than 10 to 15 years? Only time will tell.

http://www.industryweek.com/ReadArticle.aspx?ArticleID=11612
http://news.yahoo.com/s/nm/20060313/tc_nm/rfid_dc_2
http://www.publictechnology.net/modules.php?op=modload&name=News&file=article&sid=4603

Joe Longo International Sales - EMEA Mobile +1 603-205-3363 Office +1 207 363 3195 x464 Fax +1 207 363 1394 www.loftware.com