Mobile infrastructure technological development in the last decade leads to novel mobile commerce based advertisement addressing the businesses and end-consumers. Although location-based services developed rapidly in recent years, the reasons why we proposed a new system were lack of an intelligent location-based promotion system. In order to get the opinion and interest of users about modern promotion system, we conducted a preliminary study. Based on the preliminary study, we propose an e-Torch m-commerce based mobile promotion system to facilitate businesses (such as hotel, restaurant, shopping mall etc.) and to advertise their products in an efficient way to the mobile customers according to their current Global Positioning System (GPS) co-ordinates. A proposed Ellipse model in this research assist the points of interest searching for mobile user according to current GPS co-ordinates by sending resultant information via cellular network (GPRS/3G). Furthermore, we justified proposed research by conducting a comparative study of the existing m-commerce based location tracking systems. Finally, we conducted experiments using simulation between notebook as client and remote server. We set clients’ positions and used 3G usb modem for the data transmission. Round trip time was calculated to show success of the proposed system in different situations (indoor, outdoor, static and mobility).