Location data about a mobile entity (20) is provided in encrypted form by a location server (79) to a recipient that is one of the mobile entity (20) or a service system (40) usable by the mobile entity. The location data (P) is encrypted such that it can only to be decrypted using a secret available to a decryption entity (80) that is not under the control of the recipient. This permits location data (P) to be provided in a confidential manner to service systems (40) and also protects billing relationships between participants. A mechanism is also described for limiting the accuracy of decrypted location data (L) made available to a service system (40).