The recurring cost for third-party service provider fees includes renewal fees for EPCglobal (20 percent of the initial fee) and UCCnet (same annual fee), as well as renewal fees for other optional third-party service providers, such as Transora or WWRE.
The recurring cost for additional labor is certain to be required when deploying a slap-and-ship model and will vary depending on the volume of tagging and the number of tagging stations.
The recurring cost for RFID research and development will be an ongoing cost simply due to the evolving nature of RFID today.
We believe many early adopters have underestimated the cost of implementing RFID. Moreover, quicker-than-usual technology obsolescence should require additional investments to leverage evolving capabilities.
We also believe RFID technology infrastructure costs required to capture and manage an unprecedented amount of data could grow significantly as RFID becomes more widespread.