Facebook Places is a new application for mobile phones that enables
Facebook users to alert their friends to their current location.
Although the service is currently only available in the US, Facebook
said it will be rolling out the tool to other countries in the coming
months. 

It enables people to provide a real-time update of where they are and
what they’re doing when they’re on the move. It means people can tell
their friends about a cool restaurant or a film that’s worth going to
see, or even a good spot for a picnic. 

Facebook believes Places will also enable its users to take advantage of
unexpected coincidences – such as discovering that they are at the same
concert as their friends. Users can “check in” when they arrive at a
location, just as in rival service Foursquare, and see whether any of
their friends are nearby. 

When a Facebook user checks in to a location, an update will
automatically be published to their friends’ News Feeds. They can also
“tag” friends who are in the same location, either by way of a photo or
a status update. 

Facebook has partnered with other geolocation companies, including
Gowalla, Foursquare, InCrowd and Yelp, to integrate their services in to
Facebook Places. 

http://www.telegraph.co.uk/technology/facebook/7953676/Facebook-Places-What-it-is-and-how-it-works.html
 
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