Loopt, the location-based social networking application for the iPhone and other smartphones (and iPod touch users), is announcing that they will now be offering a GPS for iPhone (and assuming other phones) through AT&T. The Always-On Location Service, which won't run on the iPhone, will constantly update Loopt of your location and will eventually cost $3.99/month (currently 3 month free trial) and be billed by AT&T on your phone bill rather than through iTunes or the App Store.
This is an interesting development for a number of reasons. Firstly, it bypasses the iPhone entirely. It doesn't use GPS, it uses AT&T's cell location data to triangulate your location (like A-GPS).
