It should be feasible for an operator to issue a command to the (e)UICC (SIM) in the phone to fetch the current location from the modem and send it back via SMS. At least this was the case for a relatively long time.
Not that it _really_ matters because most people willfully give away their location information to Google anyways. There's a reason why Google has the best Wi-Fi AP -> Location database that they provide commercially. Send them a list of Wi-Fi BSSID's and their associated RSSI's and you'll get a fairly accurate location.
In comparison, using Cell ID's for geolocationing is finicky. In dense urban environments, you're likely looking at ~500 m radius of accuracy - at least based on the commercially available options.