Recently, mobile location estimation is drawing considerable attention in the field of wireless communications. Among different mobile location estimation methods, the one which estimates the location of mobile stations with reference to the wave propagation model is drawing much attention on the grounds that it is applicable to different kinds of cellular network. However the estimation accuracy of the signal propagation model deteriorates as the distance between the mobile station and the receiving base station increases. In view of this, we have designed a New Location Estimation Approach which has divided the location estimation into two phases, the Data Collection Phase and the Location Estimation Phase. In this paper, we report our study of the New Location Estimation Approach. We tested the approach with real life data collected from a major mobile operator of Hong Kong. Results show that the New Location Estimation Approach has improved the existing statistical signal propagation model by 30.94%. This improvement can be further enhanced if more data are collected.