Google (News - Alert) Inc. has started testing a new technology, dubbed “My Location,” that is said to be capable of finding the location of people using its mobile mapping service, even if the phone making the connection does not have a built in GPS.

The latest Google mapping system equipped with My Location allows cell phone towers to let mobile phone users locate nearby locations without typing in addresses, and according to reports, it is designed to expand the percentage of cell phone users of location-aware services, whether or not their phones come equipped with satellite-locating chips.

Google Maps for Mobile with My Location automatically informs mobile phone users where they are on a map. According to reports, users simply have to type the number zero on their phone, equipped with new software, to move the map to their approximate location, and the sender's location shows up as a blue dot on Google's mobile maps.

When the user pushes the button, My Location feature draws a dot at the nearest cell tower and draws a circle around it to identify the area in which it thinks the user is present. In addition, the screen also tells the margin of error, typically between 500 and 2000 feet.

“The tracking system isn't set up to collect a user's phone number or any other personal information that would reveal a person's identity,” Steve Lee, product manager for mobile maps at Google, told the press. He pointed out that as a safeguard, the feature can be turned off at any time by simply clicking on a link in the help menu.

Greg Sterling, Analyst at Sterling Market Intelligence, expects that the assurances provided by Lee will alleviate privacy concerns raised about the new service. After trying out My Location on a Blackberry device, Sterling predicted people will embrace it. He remarked that it is “an incremental improvement but still meaningful.”

Reports state that Google’s new feature also works indoor, which is not possible with GPS technology, and it is said to consume less power from a phone's battery than a GPS receiver does.

However, according to Lee, Google’s service isn’t as precise as GPS. He said, “Google hopes to get within one-quarter to three miles of a user's location—close enough to provide helpful neighborhood-level information.”

Lee also predicts that by knowing more about a mobile phone's location, Google conceivably could make more money displaying ads from nearby businesses hoping to lure in more customers. He added, “Mountain View-based Company currently doesn't plan to show ads on mobile maps but may in the future.”

At present, as per reports, the tracking system's database currently spans more than 20 countries, including United States, much of Europe, Australia, New Zealand, the Russian Federation and Taiwan. It doesn't yet work in China or Japan.

My Location currently is said to be compatible with Blackberry and the latest Nokia handsets. However, iPhone, Motorola (News - Alert) Q, Samsung Blackjack and Palm Treo 700w and other models will have to wait before they can avail My Location feature.

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Anshu Shrivastava is a contributing editor for TMCnet. To see more of her articles, please visit her columnist page.