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RFID (Radio Frequency Identification)

� a technology that is used in identifying objects using radio frequency waves

� RFID uses radio frequency which drastically increases the range and accuracy of identification compared to optical light which is used in barcodes,

� IT’S SIMPLY A NEXT GENERATION IDENTIFICATION TECHNOLOGY SIMILAR TO BARCODE READERS

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� South Africa - Motor Vehicles registration but uses active RFID which are more expensive

� Philippines – Toll Payment Epass (SLEX) / EC Tag (NLEX); Access Cards; ePassport; Authentication Cards; Large Philippine Companies are already moving towards using RFID for inventory and supply chain management; used by schools for gate access (Claret and Letran), security, and borrowing of books; Access Cards/Parking for Hospitals

� Mexico – Vehicle Identification; Vehicle Authentication; Toll Road operation

� Singapore – Payment Card (EZ link); Toll Payment; Traffic Management

� Hong Kong – airline luggage locator/segrator; Retail Payment (Octopus Card); toll and mass transport

� USA – retail systems (Walmart); Supply Chain Management; Passports, Payment System (Mass Transport/Toll Payment), inventory tracking, tracking & authentication of medical records

� Malaysia – Passports; Payment System (Touch and Go)

THE TECHNOLOGY IS AVAILABLE AND WIDELY USED WORLDWIDE

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RFID Tag

AntennaIC Tag (~ 0.5mm x 0.5mm)

Passive Type: Non battery powered

Active Type: Powered by battery

Will be used by LTO

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Sends Out RF Signal

(Command)

Sends back RF Signals

(Data)

Antenna / Reader

RFID Tag

RF Signal Activates the Tag

1. Make the Motor Vehicle Registration System faster and easier. Drive Thru Registration will become a reality once all vehicles are tagged

2. Address the problems of colorum vehicles.

3. Assist in law enforcement and act as a deterrent to crimes such as carnapping, smuggling, illegal switching of plate numbers

4. Effective tool in land transport planning and traffic management

5. Ensures road worthiness of vehicles and strict compliance with the Clean Air Act by eradicating the practice of ‘non appearance’ in emission testing centers

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1. Can the RFID application for the LTO be used to spy on individuals?

NO. The tag does not have GPS capability. A cellphone is

potentially a more invasive and privacy threatening device than

RFID.

� RFID Unique Code� MV File No.� Engine No.� Chassis Number� Plate Number� MV Type � Color� Make� Series� Year Model� Body Type� MV Classification� Franchise� Route� Owner/Org Name� Last Registration Date� Alarms – settled & unsettled

LTO IT System

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Tag will be placed in the middle inner

Portion of the windshield

All weather RFID Tag to be placed

at the space between the side

mirrors for motorcycles

2. Are RFID tags all priced the same?NO. There are tags that cost as little as 10 cents to as high as 500 USD. The price difference is explained by the features of the tag. For example:

a) the LTO tag is designed to withstand harsh environments (e.g. UV radiation, humidity, heat, etc) for a long period of time. b)The LTO tag can be read at high speeds (140 kph)c) The LTO tag can be read at a consistent range (10

meters)d) The tamper proofing of the tag

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3. Is the price of the RFID system reasonable?YES. Because:

a) it is a one time paymentb) tag has a warranty of 10 yearsc) Other RFID tags in the country costs more

such as the epass which costs Php 1,500 and needs to be replaced after 5 years

d) The Php 350 covers not just the tag but the entire system plus its operation, yearly maintenance, VAT and government’s revenue share

� RFID Price Comparison

Application Costs Remarks

LTO’s RFID Project P 350 Cost includes tag costs, operating & capital expenditures; good for 10 years

Epass for SLEX P 1,800 Includes load of P 500, uses active tags, good for 3 to 5 years

EC Tag for NLEX P 1,500 Inclusive of P 500 load, uses active tags good for 3 to 5 years

Philippine ePassport P 950 Valid for 5 years

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COST OF RFID WORLDWIDE

RFID Application / Country

Costs Remarks

LTO’s RFID Project / Philippines USD 7 (Php 350) Cost includes tag costs, operating & capital expenditures; good for 10 years

Touch and Go and Octopus (Payment Card) / Malaysia, Hong Kong

USD 40 (Php Php 2,000)

Payment System for Transport, other retail outlets

EZ Link (Payment Card) / Singapore

USD 12 (Php 600)

Mass Transit

Grocery Tag/Asset tagging (Worldwide)

USD .10 (Php 5) Used for simple identification

RFID for Containers (Logistics) / US, UK, Germany

USD 500 (Php 2,500)

Container and Logistics Tracking

4. Can anyone just replicate the LTO’s RFID tag?

NO. As compared to license plates or registration

stickers, RFID tags are impossible to replicate.

Each RFID tag all over the world is unique and is controlled by an industry organization called

Electronic Product Code Global (EPC Global). This organization ensures that every RFID tag in the world is assigned a unique ID and therefore RFID

tags cannot be pirated or duplicated. This is certified by ISO 18000-6C.

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4. MIDNIGHT DEAL ?

� NO. Project has undergone various approval process since September 2007.

� This was presented to several committees in LTO to determine in length its technical, operational,, legal and financial viability

� Project was also independently evaluated by the DOTC prior to actual release and issuance of the Department Order

Approval Process

CONCEPT APPROVAL

• Concept Endorsement by RDs & ARDs

• BPS Review

• ITPEMC Approval• PMC Approval

• Requirement Clarification Review• ITPEMC Approval

COMMERCIAL APPROVAL

• Review & Approval of the Change Order• Concept Review by JCCB

• Technical Review by TWG of JCCB

• Financial Review• Joint Review by JCCB and JFC

• Public Consultation

LEGAL APPROVAL

• Review & Approval of the MOA by LTO

• Review & Approval of the MOA by DOTC

• Release of Department Order (D.O.)

• Publication of D.O.• Filing @ UP Law Center

• Release of LTO I.R.R.

• Publication of LTO I.R.R.

• Filing @ UP Law Center

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5. Was there any Public Consultation Held ?

YES. There were 2 public consultation held inFebruary 11 and 19, 2009. The 1st was forVisayas/Mindanao and the latter was forLuzon/NCR.

Notices to the Public were published in newspapersbefore the actual consultation.

After the consultation, a favorable endorsementwas passed by the national transport leaders

6. Does the LTO RFID project require Public Bidding?

NO. The RFID project is part of the existing LTOIT Project under the BOT Law and itsImplementing Rules & Regulation. It is anenhancement or an upgrade of the Motor VehicleRegistration System.

According to the NEDA Guidelines which coverBOT ICT projects. The change or enhancement isless than 20% of the original total project cost, as isin this case, NEDA-ICC approval is not required.NEDA needs to only be informed of the projectand this was done in June 2009.