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Some location estimation methods, such as the GPS satellite navigation system, require nonstandard features either in the mobile terminal or the network. Solutions based on generic technologies not intended for location estimation purposes, such as the cell-ID method in GSM/GPRS cellular networks, are usually problematic due to their inadequate location estimation accuracy. In order to enable accurate location estimation when only inaccurate measurements are available, we present an approach to location estimation that is different from the prevailing geometric one. We call our approach the statistical modeling approach. As an example application of the proposed statistical modeling framework, we present a location estimation method based on a statistical signal power model. We also present encouraging empirical results from simulated experiments supported by real-world field tests.