Today in a press release, Navizon announced their partnership with Microsoft to share their global location database. Presumably, this database will be used with Windows phone 7 although no word on Windows Mobile 6.5.
Navizon, for those who don't remember, have a Windows Mobile program called Mobifindr, which allows you to find your phone via text message or locate your friends. More importantly, they featured a "virtual GPS" system whereby your location could be ascertained via WiFi and/or cell-tower triangulation. This was a bigger deal in 2008 when GPS was still not the norm on many WM phones.
This deal actually makes a lot of sense since we know Windows Phone 7 Series uses 'Orion', the same location-bases service found in Windows 7. It too uses WiFi, cell-tower triangulation, IP detection and straight up GPS to identify your location with a simple API. So Microsoft has the hardware/software to find your location (coordinates), but what they don't have is access to some type of database of locations.
Unlike Google, who can collect your geo-location information via millions of cell phones (read that user agreement), Microsoft is still new to the whole location-based services game. This deal with Navizon seems to give them that extra edge to compete with Google.