Europe has launched the GAWAIN project with the target to to combine satellite positioning with 3G mobile phone technology on a single chip. Both positioning systems, GPS and Galileo, will be embedded in the chip, along with 3G technology. Tests are on going under real conditions until March 07. Clearly the program targets mass markets with low-cost fully integrated devices. Except fewer components and lower cost, combined with lower power consumption, the chip will be attractive for handset manufacturers to include navigation as standard in their handsets. It is THE condition to unlock the future potential for location-based services or LBS.