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EC Floats Plan to Facilitate RFID Usage

Second, the EC is studying long-term requirements for additional RF spectrum needed by the RFID industry and may identify additional spectrum, if the need arises.

Third, the commission wrote, without being more specific, that it will stimulate research on the miniaturization of silicon chips and on organic chips in order to help move the overall price of passive tags toward 1 cent per tag; in addition, it will support research on security in RFID systems.

Fourth, the ECcalled upon European standardization bodies, in cooperation with industry groups, to ensure that international and European RFID standards meet European requirements on privacy, security and licensing. Through current European standards organizations, such as the European Telecommunications Standards Institute (ETSI), and talks with counterparts in the United States and Asia, the commission will support RFID standards for certain application sectors such as container security, counterfeiting, air transport and pharmaceuticals.

Finally, the ECwrote that at the end of 2008, it will publish a communication about technological and governance issues that will analyze the nature and effects of systems of autonomous objects, often called "The Internet of Things" in Europe. The paper will assess policy options, particularly those for data protection and privacy.

The commission estimates that the European market for RFID will grow from 500 million euros in 2006 to 7 billion euros in 2016.

RFID industry representatives attending the CeBIT fair responded to the EC's proposed RFID policy framework. BITKOM, which calls itself the voice of the IT, telecommunications and new media industries in Germany; AIM Deutschland, the auto-ID industry association in Germany; GS1 Germany, the EPCglobal representative; and Informationsforum RFID, a business group that includes DHL, Metro Group, Intermec and Procter & Gamble, all welcomed the proposal and appealed to the EU to increase its support for the European RFID sector.

"Europe has the chance to increase its technical leadership in RFID systems vis-à-vis the competition in Europe and Asia," the four groups wrote in a joint press release. "The commission's proposal is an important step in this direction."

The groups also warned against overregulation and indicated that the harmonization of currently available UHF frequency among member EU states and the use of UHF frequencies that may become available as analog television gives way to digital television will be important prerequisites for Europe's technological leadership.

"The responsible European authorities must make enough spectrum available in the next years," said Osman Al Saqaqy, the head of the EPC RFID division at GS1 Germany. "Frequency made available by the switch from analog to digital television would fit the bill."

Wolf-Ruediger Hansen, the head of AIM-Deutschland, said: "RFID plays a basic role in the realization of the Internet of Things. This is a worldwide information infrastructure that can gather and transmit information about the position of objects such as containers and products along a logistics chain. This will help all companies involved in the transport of goods get the most possible use out of such data transparency."

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