Location based services (LBS) has become the key feature for wireless phones, and its wheeled vehicle equivalent, telematics. The essential elements to LBS have been a two-way wireless data communications link plus navigation data inputs to permit a screened flow of information from LBS data servers. Today, most LBS system designers consider the fusion of Global Position Satellite (GPS) receivers and cellular phone services the starting point. Electronic compass is another navigation aid that LBS can use along with wireless services and GPS data. Electronic compass rely on sensing the earthpsilas magnetic field, and supply a electronic compass heading angle based on a north heading reference. By assigning a wireless phone or telematics receiver a forward direction for pointing, the resulting pointing/heading angle is essential in LBS applications to indicate to the data server what you are pointing to. This paper is intended to show that magnetic electronic compass is a ldquomust haverdquo feature for quality location based services functionality.