How did Picasa or Android know the location of the photos?

Danger

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So I took this train trip in Norway through the mountains, and had no network or internet connection (my phone doesn't work in europe).
I had brought a modem but it wasn't working all the time so I kept stressing out over my pictures not getting geotagged correctly.

When I looked on the picture info on the Android, after snapping the pics, they got tagged in a city far far away (the last place I had internet connection). And I couldn't manually edit the location.

However when I uploaded the pictures to Picasa it got 80% of the locations correctly!
Pretty cool but how did it do it?
 
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