Advances in wireless communications and information technology have made the mobile Web a reality. The mobile Web is the response to the need for anytime, anywhere access to information and services. Many wireless applications have already been deployed and are available to customers via their mobile phones and wirelessly connected PDAs (personal digital assistants). However, developing the “killer” wireless application is still a goal for the industry rather than a reality. One direction for developing such applications points to locationbased services (LBSs). LBSs are services that are enhanced with and depend on information about a mobile station’s position. Location information by itself is not the ultimate service, but if location information is combined with content, useful services may be developed. These services offer the capability to users and machines to locate persons, vehicles, machines, and resources, as well as the possibility for users to track their own locations (GSM Association, 2003). The focus of this article is the analysis of the most critical success factors and challenges for LBS.