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In this paper, a novel compact planar three-way dual-band power divider using defected ground structure (DGS) is proposed. Based on this method, the power divider is reduced half of its original size. And it achieves a good performance. To verify the validity, a 915/2400 MHz power divider is fabricated, which could be applied in radio frequency identification (RFID) system. The experimental results show good agreement with the simulated responses.