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One of the important parameters for indoor localization systems based on wireless local area networks (WLANs) is estimation of time of arrival (TOA). This paper presents a technique that utilizes the channel transfer function to estimate TOA. The technique is based on the Prony algorithm, which has been used for the prediction of multipath parameters. Computer simulations for noisy and noiseless data have been performed to validate the technique. Moreover, measurements at WLAN frequencies are performed for further confirmation of the suggested technique.