File sharing service Drop.io today is launching Drop.io Location at the Web 2.0 Expo. The new feature provides users the ability to assign a physical location to digital content in a Drop.io drop.

Linking file drops to geographical locations opens advertising opportunities as well as additional privacy and security controls. Drop.io Location uses Skyhook Wireless’ wifi-positioning network.

Google last week unveiled the winners of their Android Developer Challenge. Most of the top 20 apps utilize the location capabilities of the Open Handset Alliance’s operating system, but with no phones on the market, Android faces an uphill battle against iPhone.

‘Google wanted twenty very solid, ready-to-launch applications for the new phones,’ says Rosie Pongracz, co-founder of PocketJourney. ‘I think that’s why they held the competition to begin with. That’s our interpretation. Of course nothing has been formalized.’

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Boston-based Skyhook Wireless provides the wifi positioning technology for the iPhone 3G. Wifi positioning works indoors, where GPS fails.

The company now also offers hybrid positioning, that combines both GPS and wifi to get the best possible effect, and recently expanded its operations into Europe.

Geoweb Report talked to Skyhook Wireless’ founder and CEO Ted Morgan:

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The panel at Mobile Monday discussed the role of mobile and location based services in the monetization of social networks. ‘It can’t just be about advertising,’ says Verizon’s Jennifer Byrne.

Will location based services go the way of the internet fridge? The question was raised during Friday’s Focus on Locus conference at Columbia University.