UK telecoms regulator Ofcom has set aside free spectrum to allow users to introduce cheaper and more flexible radio frequency identification tagging.
Ofcom has allocated the 865MHz to 868MHz frequency band range for RFID tags, which are designed for stock control and asset tracking.
As a result of its decision, companies now have the option of rolling out RFID technologies within allocated frequencies that do not require a licence to be used.
Current RFID users, which include retailers such as Tesco and Wal-Mart, have to pay for RFID licences that cover narrower frequency bands.
Ofcom's decision follows a consultation on the spectrum award and comes after similar decisions in other parts of Europe to use the same frequency band for RFID.
The short-range Bluetooth wireless connectivity technology and Wi-Fi networks were also allocated free wireless spectrum to operate when they were launched.