Location Based Service has wide market prospect; especially real-time traffic information service is becoming the research hot pot home and abroad. In recent years a series of study on Location Based Service have made by some researchers, but none is found to make use of mobile phones' location to acquire the traffic information. The major contribution of this paper is to originally introduce Location and Speed Based Traffic Information Service (LSBTIS). In this paper, LSBTIS is discussed from four aspects including present research situation, implementing principle, advantages and market prospect.