The original idea for this Bachelor’s thesis came from Oulu University of Applied Sciences, Ubilab and partly from the author’s interest in real-time location systems and the technology behind them. The aim was to study different systems and compare them with each other and also discover different applications where real-time location systems or indoor positioning systems are used and what is the difference between these terms.

This thesis examines indoor positioning systems, the technologies and methods that are used and introduces the various applications in which these systems can be used. The most common systems are based on radio technology, in which this thesis work will focus on, such as Bluetooth and WLAN. Originally, these techniques are not designed for positioning, so the traditional use is also explained. The basics of radio technology are also described, which clarifies the operation of positioning technologies in indoor usage and the factors that affect signal progression.

The indoor positioning systems require careful planning, so that the system is performing optimally. The weaknesses of radio based systems need to be discovered and accurate measurements need to be done to the property before installing the system. The most appropriate choice of technology depends on many factors. How accurate positioning information is needed, what is being located and is there an existing system that can be used? In addition to the traditional tracking solution, there are many applications developed, e.g. location based services, as well as systems that can be used to indoor navigation.