An Anaheim company signed a contract Thursday that moves the company one step closer to launching its PocketFinder, a small device that parents can use to find their kids. The deal will let Location Based Technologies’ product use wireless networks from KORE Telematics‘ partners.

ProductFinder is in its final testing stages and provides parents with alternatives to tethering themselves to their children, or giving kids cell phones that can easily be turned off.

How does it work? Children wear a small waterproof device that transmits its location to satellites. Parents call a 714 phone number and type in a private code. The system tells the parent the location of the device. The company’s illustration suggests that the location is given as a street address. Also, the tracker can be alerted when the trackee travels above a specified speed or when the leaves or enters a specified zone.

Who is it for? Besides parents, Location Based Technologies suggests the PocketFinder be used for medical and elderly care providers, outdoor or extreme sports enthusiasts and pet owners. Accessories will be sold for the device, such as a pouch that holds the locater, and can be attached to things such as dog collars, purse straps or belts.

When will it be available? In the first quarter of 2008, selling for less than $150 with a few different monthly rate plans, the lowest costing less than $15 a month.

What cell phones work with it? Any phone can be used, but a phone isn’t even required. Users only buy and sign-up to use the device through Location Based Technologies. They can locate someone by visiting a Web site or calling a phone number. People can choose to have the alerts sent as e-mails, text messages or phone calls.

“Our goal is to make this (product) as simple to use as possible,” said Location Based Technologies’ Co-President and CEO David Morse.

An old press release by Location Based Technologies refers to a report from market research firm Jupiter Research that found 42 percent of parents with children under age 13 are “especially interested and willing to pay for services that allow them to track their child’s location.” Meanwhile 26 percent of cell phone owners between the ages of 18 to 24 want mobile social networking applications based on their friends locations, according to the report.

In contrast, Jupiter Research said in that report that use of available mobile applications to aid in more traditional navigation remains low as less than 3 percent of cell phone users report routine use of maps or turn-by-turn directions in their travels.

In similar news, back in 2005 some parents and lawmakers raised concerns over similar tracking devices and a California bill was approved that blocks such technology from being used by public agencies to monitor the public. That bill takes effect Jan. 1.