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FCC Probes Need for Major Revision to RFID Rules

The FCC plans to look at its radio frequency identification (RFID) rules for a possible update, said Edmond Thomas, chief of the FCC Office of Engineering & Technology. Speaking Thurs. at a Commission symposium on RFID, Thomas said the move is necessary given that the technology is poised to grow in popularity quickly. However, Chmn. Powell said Thurs. he hasn’t reached any conclusions. And other FCC sources headed into the symposium said the initial belief at the Commission was that new rules weren’t needed at this time.

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Thomas promised the Commission would keep an open mind. “We're here today to understand the technology and the likely path that technology will follow,” he said. “Staff would like to reassess the FCC rules and procedures and determine if any of them are hindering either the application of this technology or its evolution. Obviously, if the answer is yes, we would be making recommendations to the Commission for changes.”

Chmn. Powell said Thurs. he hasn’t made up his mind on the issue. While “we've already done some things,” he told reporters, “these workshops are turning out to be an important part of what the FCC does. A lot of these, when you get these new and burgeoning industries that raise novel issues, [and] when you reach across the country and yank in all the various people who are working on it, suddenly you see the magnitude of what’s going on. Usually we get a better understanding of what we need to do or if we need to do anything.”

Powell said RFID was “the dawn of a new electronics market and industry” and the FCC needs to stay ahead of the curve. “In that sense I think it’s really important for us, as the govt., to really be keen to the kinds of issues on which our rules and regulations could be a hindrance or barrier to efficient operation of the market.”

Powell said the FCC would likely focus on interference issues and whether they are accommodating enough. He compared work on the issue to steps the FCC has taken on broadband over powerlines and Wi-Fi. “The Commission has spectrum management responsibilities,” he said. “We don’t want the band to melt down or get out of control on an interference basis.”

Several panelists said RFID could be poised for a major breakthrough. With RFID tags having cost in the range of $1 each, only several million are in use in the U.S., experts said. But with their price already nearing 30 cents, hundreds of millions soon will be in use. That could grow to billions and tens of billions in a few years.

Comr. Abernathy said RFID has many positive implications for consumers and business. She cited as an example a national law firm that found its accuracy in tracking files was about 35% until it started tracking them using RFID. Its accuracy rate is now closer to 98%. Abernathy said she was pleased the FCC had decided to hold a symposium on the topic. “It seems to us when you bring together the policy-makers and the industry and the technologists and the educators we have a very productive dialogue,” she said. “A critical part of us here at the FCC is making sure we get the regulatory framework right, making sure we don’t inadvertently cause problems.”