They also mention that each location feed will be 75pence – this is expensive as it relies on the mobile operators providing the location feed, and points to the fact that an operator independent service like Google’s My Location is required to keep the cost of location affordable, which in turn will drive location based advertising. If advertisers have to pay 75p per lookup, then it is unlikely it will fly. If you are reading this, and have not yet read my guest post over on msearchgroove.com, then I would invite you to have a read of this as it explains how a different approach around zone detection will help to drive location based advertising. Zone detection is a more effective, and much potentially cheaper proposition that could provide better accuracy than the one cell tower approach of existing location systems.
Update: just found the website announcing the Sniffu service in the UK (initially only on O2) visit www.sniffu.com/uk for more information on the service.