A transponder device having multiple modes of operation, such as an active mode and a passive mode, wherein the modes of operation are selected in response to the strength of a received radio frequency signal. A communication system is also provided having a transceiver configured to transmit a radio frequency signal and to receive a responsive signal, and a transponder configured to operate in a plurality of modes and to activate modes of operation in response to the radio frequency signal. Ideally, each mode of operation is activated and deactivated independent of the other modes, although two or more modes may be concurrently operational.