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This paper focuses on one of the future applications and services area of mobile communications. Mobile devices like mobile phones and PDAs would very soon allow us to interact with other smart devices around us, thus supporting a ubiquitous society. There would be many competitive service providers selling location-based services to users. To avail such services, a user's mobile device may need to handle many service providers. It should also he able to identify and securely communicate with only genuine service providers. But these tasks could create a huge burden on the low-computing and resource-poor mobile device. Our protocol establishes a convincing trust model through which secure key distribution is accomplished. Secure job delegation and use of cost-effective cryptographic techniques help in reducing the communication and computational burden on the mobile device. The protocol also provides user privacy protection, replay protection, entity authentication, and message authentication, integrity and confidentiality.