This could be a game changer. A German company has developed a SIM card with an integrated A-GPS receiver. Navigadget has the story:
German smartcard maker Sagem Orga just announced a partnership with BlueSky Positioning to integrate A-GPS receiver on regular SIM cards.
The proprietary new approach incorporates a highly accurate GPS receiver and an antenna into the SIM card, enabling network providers to deploy both legally-mandated and commercial applications for all mobile phones, with no need for software or hardware changes. To make positioning even more accurate and user friendly, the A-GPS SIM uses assisted GPS data.