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This is a way that a mobile device (such as a cell phone or iPod) can determine it's approximate position. Mapping services (such as Google) have compiled databases of Wi-Fi access points (such as a hotspot) and their locations. Using signal strength to nearby wireless access points, this information is sent to the providing service (like Google), which then calculates your current approximate position and that information is sent back to the phone.
The articles did not specify this method of information being transmitted to the service and location transmitted back, but this method would make the most sense as the database of access points would be changing as hotspots are added or removed.
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