Google has released version 2.0 of 'Google Maps for mobile', its innovative mobile mapping and local search application. My Location (beta) calculates a user's location by measuring the distance of the phone from nearby base stations. Unfortunately, it isn't as precise as using GPS, but it drains less battery life. Google is hoping to get within one-quarter to three miles of a user's location.
Google stated that they “use various algorithms to approximate your location relative to the cells nearest you. The accuracy of this information depends on how big an individual cell is. Thus, areas with a denser concentration of mobile towers allow for a more accurate My Location reading. Additionally, as our database of cell locations continues to improve, so too does the accuracy and coverage of the My Location feature.”
"My Location" technology is claimed to be faster than GPS; besides being able to cover the inside of buildings unlike GPS; and results in slower drainage of batteries vis-a-vis GPS
Users can access Google Maps for mobile with My Location through the following countries: U.S., U.K., Europe, Australia, New Zealand, India and many to continue.
Please refer the below Video to understand this concept,
Source: Google + Internet