The technology has been around for a long time. In the US you can turn this option on at the phone to report your GPS coords when you dial 911 (emergency), or you can set it to send the info on each call. You can also turn it off 100% so it never sends.
The technology is now being used for services that allow parents to hand their kids a phone that has this feature enabled, and the parents can log into a website and track their kids (for safety purposes of course).
I know I worked on a project proposal for a large courier (Mail type thing) that we were planning on using the GPS stuff so the courier could quickly have directions sent to their phone for the next delivery (based on where they currently are).
There are good applications for this technology, but like any technology there is also bad applications for it.
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Charles Gallant