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Re:Google is defragging Android by rst on Tuesday September 03, 2013 @08:39AM (#6320528)
Proximity Alerts are part of the released AOSP core source. The replacement is not. They can interact with the WIFI location provider, but don't have to, and are still functional even if it's disabled (which is easy to do from the stock UI). So, this is a function which has been moved from core AOSP to Play Services.

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