A system for determining the vicinity of a communication device within a communication network is provided. Individual communication devices are provided with an active identification reader capable of reporting information concerning identified passive identification tags to a location server. At least some passive identification tags have fixed or known locations, allowing a communication device capable of reading such a passive identification1 tag to be determined to be within a particular vicinity or area. Communication devices may also be provided with passive identification tags to allow other active identification readers to determine whether the communication device is in their vicinity.