The next step in location services will be repeating the success of location services in outdoor use for navigation and local search in the indoor environment. In order to make indoor positioning and navigation reality in large scale not only compelling business opportunities must be present, but also the technology must be low-cost, lowpower, have low maintenance expenses and require minimal amount of new infrastructure. This paper reviews the challenges and solution models for indoor positioning starting from the service level aspects, reflecting them to the architectural considerations and finally discusses selected technical implementation issues.

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