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Location Based Service (LBS) 'as a kind of emerging applications based on the mobile Internet technology, is one of the most potential mobile value-added services. With the mobile network positioning technology and electronic map platform, it provides position information of the traffic, tourist attractions, shopping center etc. to users. This paper studies on the background, significance, types and problems of LBS. Basing on the analysis of the present situation and development trend of LBS in China and abroad, this paper summarizes the LBS service development experience, and puts forward the service model of LBS for its development.