Computer technology has evolved to a position of being able to handle large three-dimensional (3D) data sets. The third dimension is already taken for granted for visualisation on desktop machines. All GIS/CAD vendors are offering extended 3D tools for navigation and exploration of data. NASA World Wind and Google Earth demonstrate the possibilities of 3D to all users of the Web. The advances in geoDBMS are also striking; main stream DBMS support spatial data types, which can be adapted for handling of 3D data.In the same way, mobile computing is experiencing a similar evolution. Large numbers of 3D computer games are already available for handhelds, which give new opportunities to geo-specialists of having 3D geoinformation on mobile devices. Despite the fact that 3D mobile hardware and software technologies are currently still behind desktop 3D in terms of capabilities, the expectations are for two or three times faster development of the mobile 3D market compared to its desktop counterpart.Since location-based services (LBS) are among the first applications that naturally should consider the third dimension, we are going to investigate and evaluate the possible options for evolving to 3D LBS. The paper is going to concentrate and analyse on all the aspects of LBS: positioning, protocols, data retrieval and visualisation. Aspects typical for 3D data sets (large amounts of data, texturing, representations, data 108 Edward Verbree, Sisi Zlatanova models) will be discussed in details. The paper will conclude with recommended topics for research and developments.