Loopt Strikes Deal With AT&T To Become First Always-On Location Service For The iPhone

The iPhone OS doesn't allow third-party apps to run in the background, so location services such as Loopt and Google Latitude are unable to track your location at all times, something they can do on other mobile platforms.  According to Business Insider, that's all about to change, at least in sneaky sort of way, thanks to a deal Loopt has made with AT&T to offer always-on location services.

Via a deal with AT&T, and with your permission, Loopt will be able to access your location all the time you have a network connection, even when you're not actively using the iPhone app. (The app isn't running in the background; it's working server-to-server.) Loopt cofounder and CEO Sam Altman tells us that it's been users' most requested feature.

The Loopt app itself isn't being given any extra special privileges, it's just that AT&T is allowing the service to communicate server-to-server in the background even while the app isn't launched.  No more opening up the app to update your location, it will be all done for you.  The service will be completely opt-in, so you won't have to worry about your location being broadcasted if you are using the free Loopt app.  Of course, there are some catches. First off, the service will be subscription-based, meaning you will be charged $3.99 per month to utilize it, and that cost will show up on your AT&T bill every single month.  Loopt is offering a 14 day "free trial" to 5,000 customers, but you must be in the U.S., own an iPhone with a data plan and a text messaging plan, AND once the free trial has ended, you must cancel the subscription to ensure you won't be charged for future months. Another glaring point is that even though the service is "always-on," your location is only updated every 1-2 hours.  Plus, the service only uses cell tower triangulation and nothing more, which means it won't be as accurate as GPS. So basically Loopt found a loophole in Apple's system and went straight to AT&T with it.  This gives them a huge advantage over the many competing location-based social networking services and it definitely will be interesting to see what happens next.  Specifically, how will Google respond to these new developments?  It must feel like a slap in the face considering their competing service, Google Latitude, was relegated to a web app, and their much-hyped Google Voice app got placed in app approval purgatory. Are any of you willing to drop $3.99 per month on an always-on location service for your iPhone?

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