Rage against RFID

The line between fantasy and reality has blurred in the debate over adoption of radio frequency identification technology in the state and local government market."People have this Hollywood view of RFID as being a chip implanted in a person, like in the movie 'Mission Impossible III,' and that person can be tracked by a helicopter five miles away," said Patrick Sweeney, CEO of Odin Technologies Inc. of Wilton, Conn. "That tends to scare people, and it gives them the wrong image."Privacy advocates' warnings of the potential loss of personal autonomy have resonated with state officials, haunted by an image of their constituents as characters in the world of George Orwell's novel, "1984" ? an omnipresent government controlling all information, including individuals' thoughts and memories.RFID technology consists of a microchip with an antenna and a remote reader. Stimulated by the remote reader, the device sends its data via radio waves. That data can range from a unique number identifier to a vast quantity of personal or confidential data. Levels of security vary among RFID chip standards and implementations.Privacy advocates are concerned that readers other than those intended could pick up data from the chips.This year, at least 17 states, up from 12 states in 2005, are considering legislation that would limit RFID use, according to the National Conference of State Legislatures of Denver. Both New Hampshire and Wisconsin over the last year passed legislation limiting RFID.The federal government and private industry are using RFID to improve efficiencies in asset tracking and supply-chain management, analysts and industry officials said.The success stories of large retail and pharmaceutical corporations, along with the Defense Department, in using RFID in supply chain and inventory functions have spurred state officials, always looking to stretch budgets, to issue requests for information and even fund a number of small pilot programs.The projects and information requests range from tracking police cruisers and hazardous materials to school children and school visitors, industry officials said.States also are considering using RFID for driver's licenses and state employee identification credentials. Some states already use the technology for some employee identity documents.At least two states have considered including RFID in a redesigned driver's license, said Jeff Vining, vice president of homeland security and law enforcement research at Stamford, Conn., market research firm Gartner Inc.Putting personal data on a credential with RFID capability has sparked objections from privacy advocates concerned about the possibility that such information could be stolen and used.Standards for RFID have been developed, but it may take a mandate by a state CIO or governor for an enterprisewide shift to a single standard to spur greater activity in the state and local market, Odin's Sweeney said.Such decisions are perhaps two years down the road, Sweeney said. "Once that happens, then this becomes a $4 billion or $5 billion industry for state and local government," he said.So far, the industry has come up short in educating legislators, the public and the press on RFID, said Jeremy Grant, senior vice president and emerging technologies analyst with Stanford-Washington Research Group of Washington.The RFID chip industry "has done a horrible job in being out there in unison and really fighting for it," Grant said. "They have a good story to tell, but they need to get it out on the national stage."It's up to private industry to demonstrate successful commercial implementations and promote the business case for RFID, said Gerry Wethington, vice president for homeland security, justice and public safety for Unisys Corp.'s North American public sector. RFID can create greater efficiencies and cost savings for state and local governments by allowing greater visibility into asset management, as well as increased automation through re-engineering of business processes, Wethington said.Unisys declined to name any active RFID projects the company has in state or local government.As the privacy and standards battles rage around human identification documents, the seeds of other future projects are being sowed. State government officials are considering using RFID to track cargo containers in ports and on highways, as well as to help manage expensive and sensitive state-owned assets, from computers to road construction equipment, industry officials said.Pilot projects generally cost between $100,000 and $200,000, Sweeney said. Full implementations of such projects could cost up to tens of millions of dollars, said Mark Probasco, RFID solutions architect for EDS Corp., Plano, Texas."The trends that we are seeing in supply chain and asset tracking needs, it's just exploding," Probasco said.Probasco declined to talk in detail about any of the company's RFID projects in the state and local market.Systems integrators and analysts alike see potential opportunities in first-responder credentialing. One credential that could grant or limit access to an emergency scene could create more efficient and secure emergency operations, Wethington said."You'll see [credentials for first-responders] as one of the biggest areas for RFID in the future," he said.As RFID technology matures further, and as private industry and government coalesce around selected standards, RFID business in the state and local market becomes more viable, Probasco said."We still have a ways to go on the security, as well as the standards in that technology," Probasco said. But, speaking as an integrator, he added, "We see a lot more promise now than even seven months ago."Staff Writer Ethan Butterfield can be reached at ebutterfield@postnewsweektech.com.