The price of radio frequency identification (RFID) tags will remain stable for the next 12 months because new generation tags will be released to the market.

The Australian newspaper reported the 2005 LogicaCMG RFID Hardware Survey revealed hardware vendors would keep prices constant, at around A$0.60 (USD0.45) for an unpowered, reusable tag to $A2.25 (USD1.70) for a powered tag.

"Over the next three to five years, prices for UHF tags and readers are likely to come down 60 to 70 per cent, with the price of an RFID reader at less than EUR100 (USD120)," the survey said.

LogicaCMG RFID solutions group director Paul Stam de Jonge said companies would benefit from choosing Gen2 tags, expected to be available next year.

The next generation tags would have larger memories, be two to three times smaller than present chips and read 10 times faster than Gen1 tags. Software upgrades for Gen1 tags to Gen2 specifications will be available.

Stam de Jonge expects the first half of 2006 to see the introduction of application-specific products based on new standards, including "off-the-shelf" RFID tags for metal objects and plastic crates, and forklift readers.