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Phase noise is an important parameter in designing radio frequency (RF) systems since it can have large influence on system performance. Especially in RF identification (RFID) systems, phase noise is significantly reduced by the range correlation effect. Therefore the range correlation effect on the phase noise should be carefully considered in analyzing system performance and/or determining required phase noise specification. In this letter, the performance of an ultra high frequency RFID reader under phase noise and its dependence on the presence or absence of the range correlation effect are analyzed.