Abstract: An adaptive communication system and method for use in an electronic toll collection system utilizing transponders located in vehicles travelling on a toll roadway. A transponder memory stores configuration type data that identifies the type of the vehicle carrying the transponder, the transponder or the transponder's mounting. The transponder transmits the configuration type data to the communication system. The communication system includes a memory which contains a database of predetermined communication parameters for various types of configuration types. The communication system looks up the predetermined communication parameters for the configuration type and adjusts variable communication parameters accordingly. Predetermined communication variables may include the transmit power of an antenna, or the receive sensitivity of the antenna or the position of the vehicle in order to maximize the likelihood of a successful communication.