News about the Land Transportation Office (LTO) implementing RFID tagging on all motor vehicles this October has been making the rounds of the evening news today.
When I first heard about it on the car’s radio, I was surprised — wow, the LTO is going hi-tech. That should be nice. However, some sectors are blocking this move claiming privacy issues.

Nevertheless, from a technical point of view, I think this move by LTO offers more advantages than disadvantages.
This technology is not really new to Philippine highways. The ePass that thousands of cars use to drive thru tollways (NLEX and SLEX) is powered by RFID.

This October 2009, the Department of Foreign Affairs will also implement RFID on all new Passports (ePassport). If you renew your old green passport, it will be replaced with a brown RFID-tagged passport.
Private schools are already using RFID in student IDs for borrowing books and also gates in the campus have RFID ID Scanners (e.g. Claret School of Quezon City and Colegio de San Juan de Letran).
The clothes that you buy in Bench and other apparel stores are also tagged with RFIDs. Those steel gates at the entrance serve as an RFID scanner.
If the same technology is used for all registered cars, it could be a convenience in so many ways:
- Renewals of vehicle registration could be made faster/easier.
- It could also be used to easily identify stolen vehicles.
- All cars can be readily equipped with ePass too — the lines would be faster at the toll gates especially during peak hours. This can also be implemented in parking lots too.
- No need to go to LTO to pay traffic violations. Your RFID could be charged directly (contactless payment) after citation — no more confiscation of driver’s license. That could practically eradicate kotong (what’s the English equivalent?) since traffic cops can no longer blackmail you into going to a 3-day driving seminar in exchange for a small tip.
RFID works like a short-distance radio signal, normally around 10 feet or 3 meters. As such, it cannot be efficiently used to track objects the way GPS can. The issue about privacy is a legitimate concern though.
I still think it’s a good move, though. From reports I’ve heard, the tags will cost motorists around Php400 a pop. I thought that’s a bit expensive since RFID tags are really cheap nowadays.


after watching unang hirit today, it just made me more suspicious that this is just a way for LTO and stradcom to get money from motorists. imagine, the provider for the RFID chips did not undergo a bidding process. stradcom is chosen as the provider on the basis that that they won a bidding for providing IT services to the LTO in the late 90s. i think that since this project is quite huge, 350 * millions of vehicles, the selection of the technology provider should have been done in a more stringent manner. it might be possible that if this underwent a bidding assuming that there is no corruption involved, a smaller installation fee than 350 pesos might be charged to motorists. also the fact that it came suddenly as a surprise, with all the big transport groups not having taken part in their said public consultations, really reinforces my suspicion that corruption is involved.