A combination of light-emitting diode (LED) identification and a time-division multiplexing scheme is proposed in this Letter for indoor location-based service. With the scheme, the arrangement of white LED lamps and the structure of a data frame are designed to realize high-accuracy indoor positioning and location-based payload data transmission simultaneously. The results of the experiment demonstrate that the indoor positioning accuracy is 10 cm and 2 Mb/s data transmission with high signal quality is realized.