Locate me is easily one of iPhone's hottest features: In the Maps application, that's what it does, and it does it swiftly without recourse to a slow response, battery hogging GPS. iPhone does it by using Skyhook technology, which maintains a geo-referenced database of WLAN hotspots and cellphone towers.
There's only two minor issues with that approach. Yesterday evening, I was enjoying a pizza in Manchester, UK - at least according to Locate me, I was. Unfortunately I was just about 3km from home. And the next is that Skyhook's coverage is somewhat sketchy in Europe, meaning that it won't usually work. Unless, that is, you submit the hotspot of your choice to Skyhook. The only thing you'll need is a bit of patience as it takes Skyhook a few days to update their database, your router's MAC address and your location. Which naturally seems to make the whole exercise a bit pointless, I admit, but isn't it great to show off the neat feature in the safety of your own home? Thought so ...
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