Skyhook Wireless and Opera Software on Thursday said they will embed Skyhook’s location software into Opera’s browser to make it easier for web surfers to get online data specific to their whereabouts.

For instance the search for nearby restaurants, gas stations, or real estate offices would be easier since the online search facility will be able to obtain the user’s location automatically.

Location-based services have been around for almost a decade and despite early analyst enthusiasm, the market, except for the auto navigation segment, has foundered.

In the past year a number of analysts have significantly cut  projections for the market. (Will Location-Based Service Find Itself?)

The Skyhook-Opera effort is an attempt to lower at least two of the market’s major barriers–the technology is frequently difficult or inconvenient to use and sometimes unreliable. Qualcomm, Loopt Team on Location Services

Embedding the technology into a mobile or PC browser removes the manual download and setup requirements and automates almost all of the transaction.

Boston, Massachusetts-based Skyhook markets positioning technology that uses cell towers, Wi-Fi devices, and GPS to find where users are located and delivers their location data to web servers.

Once integrated into the Opera browser, the location technology works with web servers that include Skyhook’s software to fine-tune the data on the web to the user’s location.

When a user visits a site that has Skyhook’s technology, the browser will ask the users for approval to make their whereabouts available to the web site.

“Embedding location technology in the browser does bring up some privacy issues. It could be a little creepy so security has to be a big issue for Skyhook,” said Joe Nordgaard, director of wireless consulting firm Spectral Advantage.

Six-year-old Skyhook, which has licensed its technology to Apple for the iPhone, has spent the last three years trying to get browser companies such as Oslo, Norway-based Opera on board.

“There is now a standard for embedding our technology into any browser so it’s very easy for both browser companies and application developers to use our service,” said Ted Morgan, CEO of Skyhook.

Skyhook has taken $17 million in VC funding and is backed by Bain Capital, RRE Ventures, and Common Angels among others. (Skyhook Gets $6.5M in Funding)