AT&T introduces RFID services, some say a little too late
By Staff -- Manufacturing Business Technology, 11/1/2005 12:00:00 AM
AT&T says in early 2006 it will begin 90-day customer trials of a "managed, end-to-end, hosted RFID service"—the first from a major U.S. telecom carrier.
"It will be a completely integrated service, including hardware, software and integration," says Eric Shepcaro, VP, business strategy and development, AT&T. "RFID is complex. Businesses are wondering how it will work in their applications. What kind of equipment do they need? What about security? Where will the data be stored?"
One advantage of working with AT&T, Shepcaro explains, is its experience with RFID and large databases.
AT&T also has joined EPCglobal US, the U.S. affiliate of the organization pushing development and adoption of universal electronic product code, or EPC. This standard will enable using radio-frequency tags to attain supply chain visibility. Yet some observers of the RFID sector express doubts about AT&T's commitment to the technology.
"The announcement is full of mixed signals," says Will Smith, editor of the online newsletter RFID Update. "If AT&T were so committed to RFID, it seems very late to be joining EPCglobal only now. No vendor partnerships were announced, and the release is mum on where the hardware will come from."
AT&T's will be a hosted, pay-per-use service, wherein AT&T will design the system, select appropriate hardware and software, integrate to the existing IT system, and host the data at one of its 29 Internet data centers.
"The goal is to have RFID on every item in the supply chain, which will usher in a new wave of object-to-object communication and collaboration," says Hossein Eslambolchi, CTO of AT&T, and president of AT&T Labs.
Applications include "contactless" payment systems, inventory control, supply chain management, and asset tracking. "Our physical infrastructure and back-office systems interface seamlessly with all the major ERP applications," says Shepcaro.
"They're Johnny-come-lately to the field," points out Paul Polishuk, publisher of RFID Update."IBM and HP have both announced RFID consulting and integration services, so it's hard to see how much of an impact AT&T will have. Owning the network could be an advantage—making it cheaper—but the impact remains to be seen."
If the trials are successful, AT&T will make the RFID service generally available in 2006.
