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I am new to Arduino and SIM300/900 world. But I see that there is a possibility of building a vehicle tracker (approximate locality since I will use GPRS network location) using just these 2 boards.

My question is, is my assumption correct ? Can I build a vehicle tracker using just Arduino Nano and SIM300 mobule ? Is there a board that has both of them on one board so that I dont have to buy them separately ? Cost is a major factor on the decision.

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Not really.

Module can read the cell ID by below command. However, only phone company has the list of cell ID and their location. This information is only accurate to serving range of a cell, mostly in range of, 0.1 to 15km, from very dense city to country

Module can also read network ID and know, from public information, the country and network operator name.

Example taken from web:

AT+CREG?

This should give you a result like:

+CREG: 2,1,"1030","639E"

Working through the 4 returned values, the "2" reflects the current "+CREG" setting (2 means "Enables unexpected network registration and location information messages"), "1" indicates that the phone is registered with the network, "1030" is the Location Area Code (LAC) in hex (4144 decimal), and "639E" is the CellID (CI) in hex (25502 decimal).

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