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Accurate positioning of a moving vehicle along a route enables various applications, such as travel-time estimation, in transportation. Global Positioning System (GPS)-based localization algorithms suffer from low availability and high energy consumption. A received signal strength indicator (RSSI) measured in the course of the normal operation of Global System for Mobile Communications (GSM)-based mobile phones, on the other hand, consumes minimal energy in addition to the standard cell-phone operation with high availability but very low accuracy. In this paper, we incorporate the fact that the motion of vehicles satisfies route constraints to improve the accuracy of the RSSI-based localization by using a hidden Markov model (HMM), where the states are segments on the road, and the observation at each state is the RSSI vector containing the detected power levels of the pilot signals sent by the associated …