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The alternative would be GPS which some governments are looking at now. It might give higher precision with a grid of location data to enhance it, but I would assume the protocol prevents this eg by some randomization of ids?

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GPS is completely unidirectional from satellites to receivers and thus the satellites cannot be used to track the receivers

The receivers can be made to report their GPS data back for tracking purposes.

What skuhn said. That is what the solution the Norwegian and Danish government is implementing is supposedly doing. Reporting the GPS data back to a central server. If you’re using iPhone.

https://www.simula.no/news/digital-contact-tracing-qa#How%20...?

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