Mobile contexts of use vary a lot, and may even be continuously changing during use. The context is much more than location, but its other elements are still difficult to identify or measure. Location information is becoming an integral part of different mobile devices. Current mobile services can be enhanced with location-aware features, thus providing the user with a smooth transition towards context-aware services. Potential application fields can be found in areas such as travel information, shopping, entertainment, event information and different mobile professions. This paper studies location-aware mobile services from the user's point of view. The paper draws conclusions about key issues related to user needs, based on user interviews, laboratory and field evaluations with users, and expert evaluations of location-aware services. The user needs are presented under five main themes: topical and comprehensive contents, smooth user interaction, personal and user-generated contents, seamless service entities and privacy issues.