Yes, Virginia, there is an FCC requirement
IIRC, this is a proposal rather than a law. If you can provide a link supporting your claim, then I will gladly accept it. Even if it were law, it would only be workable in populated areas where cell towers are spaced closely enough for three of them to pick up a phone's signal. In many areas of the country, cell towers are few and far between. You get one tower or none at all.
As for the signal strength method, there is simply no way that it can approach the accuracy of GPS except possibly in the suburbs or a city park. Any obstruction which attenuates the signal sent to a cell tower will dramatically alter the location determined by triangulation. OTOH, GPS uses four (4) geosynchronous satellites and the time required for each of their timing signals to reach your receiver. Three are needed for triangulation and the fourth is a check on the other three. Civilian GPS can pinpoint a location to within a meter (about three feet).
Long story short--cell tower location is better than nothing, but GPS can distinguish you from the person trying to provide you with aid.
The law calls the cell phone location technology E911, perhaps you've heard of it? To save you time fuddling with entering the words "cell phone location technology" into Google, here is a quick description of E911:
Short for Enhanced 911, a location technology advanced by the FCC that will enable mobile, or cellular, phones to process 911 emergency calls and enable emergency services to locate the geographic position of the caller. When a person makes a 911 call using a traditional phone with ground wires, the call is routed to the nearest public safety answering point (PSAP) that then distributes the emergency call to the proper services. The PSAP receives the caller's phone number and the exact location of the phone from which the call was made. Prior to 1996, 911 callers using a mobile phone would have to access their service providers in order to get verification of subscription service before the call was routed to a PSAP. In 1996 the FCC ruled that a 911 call must go directly to the PSAP without receiving verification of service from a specific cellular service provider. The call must be handled by any available service carrier even if it is not the cellular phone customer's specific carrier. Under the FCC's rules, all mobile phones manufactured for sale in the United States after February 13, 2000, that are capable of operating in an analog mode must include this special method for processing 911 calls.
The FCC has rolled out E911 in two phases. In 1998, Phase I required that mobile phone carriers identify the originating call's phone number and the location of the signal tower, or cell, accurate to within a mile. In 2001, Phase II required that each mobile phone company doing business in the United States must offer either handset- or network-based location detection capability so that the caller's location is determined by the geographic location of the cellular phone within 100 meter accuracy and not the location of the tower that is transmitting its signal. The FCC refers to this as Automatic Location Identification (ALI).
I oversimplified the location mechanism for simplicity's sake, but since you also have a Master's Degree in Electrical Engineering and over twenty years experience in radio communications, I'll give you the straight technical scoop:
Most of the carriers selecting the E911 technology favor a combination of time difference of arrival (TDOA), which calculates a phone's position based on the speed the signal reaches multiple nearby antennas, and angle of arrival (AOA). With AOA, cellular towers identify the direction from which a signal is coming and then plot the direction of the incoming call based on a reading from two towers. TDOA is how GPS works, as you know. ESM and SIGINT receivers usually use AOA to get a position fix. Yes, I know multipath effects add Rayleigh fading to the signal strength measurements, but they also add errors to TDOA and AOA measurements as well.
As for the case where only two cell phone towers are in range in a rural area, they are usually sited to provide overlapping coverage along commonly used roads - which is also where you're most likely to find someone who is not familiar with the area and needs help. And I still think the third tower down the road could still get enough signal to make a TDOA and/or AOA estimate. In any case, emergency crews would start with the reasonable assumption to start looking for the person on or near the road.
As for GPS versus E911 accuracy, remember that GPS WAAS (which is a form of Differential GPS) provides that 3 meter accuracy. If you are not near a WAAS transmitter you are back to 15 to 30 meter accuracy. In any case, if you tell a highly motivated paramedic that someone is hurt and the paramedic knows their location within 300 feet - I'm pretty sure they will be able to find them.
Look, if you like GPS and already carry one around - adding it to your phone saves you weight and cost.
OK, I'm done wrestling with this subject. Happy trails to all. I'm gonna go look at Leopard screen shots and count down the days to my new iMac.