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RF-based localization has gained popularity as a low-cost solution to support position awareness in ad hoc networks. The received signal strength (RSS) measured by pairs of nodes can be used to obtain either range estimates or connectivity information. It is not clear, however: 1) when a range-based scheme should be used in favor of a connectivity-based one, and 2) how to optimally convert the RSS into connectivity data. This paper uses analysis of the Fisher information and the Cramér-Rao bound (CRB) to answer these questions. Solutions are found by comparing the network connectivity against two values: the critical connectivity (CC) and the optimal connectivity (OC). After discussing the properties of both values, we show how their approximation can be used to improve the performance of RF-based localization systems.