Could Broadcom Offer The Ideal Chip For Location Based Services?

Could this chip from Broadcom be the solution to location based advertising and jump start mobile marketing?

Will the ability to determine location using Wi-Fi hotspots impact the GPS stronghold service providers have?

Broadcom and Skyhook Wireless partner to bring Wi-Fi positioning to mobile phones.

Broadcom, which makes many of the GPS, Wi-Fi and other types of chips in a vast array of phones, is adding Skyhook's Wi-Fi positioning to its chips as well.

Skyhook Wireless, which makes a geolocation system that uses WiFi, not GPS satellites.

C/Net explains:
There are big advantages to WiFi over GPS. For one thing, more people have WiFi radios than GPS receivers. Also, WiFi works indoors, where GPS often fails.

Skyhook has a consumer application, Loki. It's a toolbar add-on for Firefox or Internet Explorer that will pinpoint your physical location on a Google map, and, if you want, also connect you to other "geotagged" databases of restaurants, photos, people, and so on.

This data will also enable location-focused online advertisements, which might be more relevant that current ads. It might also creep you out to get an advertisement that knows where you are