We've all been in this situation: We answer a call on our cell and the first thing we hear is, "Hi, where are you?"
And indeed, cellular phone companies do offer today an array of location-based services to help parents keep tab on their kids, get directions and more.

What about when we are online then? Would a similar service be helpful? Well, Time Warner Inc.'s (NYSE:TWX) AOL Skyhook application, the new free location plug-in for its AIM instant messaging will do just that -- it will show users where their buddies are located. It is the first of several new location-aware capabilities AOL plans to add to AIM in the next couple of months.

How is that possible? I mean, GPS I can understand -- a chip inside the handset -- but how can Skyhook tell my online location? Well, apparently, Skyhook used a fleet of trucks to scan hotspots and our home wireless routers as they drove around Canadian and U.S. cities and got the routers' unique code. With that, Skyhook built a 16 million Wi-Fi access points database that covers 70% of the population.

AOL might run into a problem with wireless companies already offering a similar services -- why should it facilitate AIM's Skyhook service for AIM mobile clients? However, some have pointed out that GPS location in downtown areas isn't so accurate. Skyhook could be a cheap solution.

Finally, for all those concerned about privacy, no worries. Users can opt out and choose not to share their location and AOL doesn't store any customer-specific data so it can't track movements. AIM just continues to be on the forefront of instant messaging innovation.