Writing about RF identification technology in my last column got me thinking more broadly about the benefits of knowing the location of objects-particularly electronic ones. RFID solves the location problem in a passive fashion, since compatible external readers are required to be in close proximity. However, electronic objects that take a more active role in determining and communicating their location are likely to have an even bigger impact on our daily lives.

Perhaps the biggest benefit lies in safety and security. Phase 2 of the FCC's enhanced 911 (E911) rules requires carriers to pinpoint a caller's location to within 50 to 100 meters by Dec. 31, 2005. Carriers are generally opting for one of two standards for handset positioning in their networks: E-OTD or A-GPS.

With, without GPS

AT&T Wireless and Cingular have opted to use the Enhanced Observed Time Difference technique. Rather than relying on the Global Positioning System, E-OTD uses the timing difference between transmissions from a base transceiver station (BTS) to a known fixed location and from a BTS to the phone itself. Though E-OTD carries some technical complexity, the main benefit is that handsets require only a little more memory and enhanced software.

The main commercial alternative is Assisted GPS. This solution, adopted by Nextel, Sprint and Verizon, requires that handsets include GPS receivers. This increases the cost and power consumption but is technically easier to implement than E-OTD.

Safety and security are only the tip of the applications iceberg. Other benefits include location-based services and management.

The management piece is more immediately tangible, since enterprise IT managers are going to need to find all those hidden wireless-LAN access points for inventory, repair and upgrades. It's not hard to imagine that all electronics may soon have location awareness, making it possible to rent the nearest equipment on demand.

Jeremey Donovan (jeremey.donovan@gartner.com) is chief analyst at Gartner Dataquest.

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