For iPod touch with Maps, the Maps application provides your approximate location using information based on your proximity to known Wi-Fi networks (when on and available). The more accurate the available information, the smaller the circle identifying your position on the map. The feature is not available in all areas. Known Wi-Fi networks are predominantly in urban areas. In order to provide your location, data is collected in a form that does not personally identify you. If you do not want such data collected, do not enable the feature. Not enabling the feature will not impact the functionality of your iPod touch.