This could be for emergency reasons
- Inform this TAI(s) there is a Tsunami wave coming
- narrow down the area where form the emergency is/was needed
- narrow down to the geographical area of emergency-prank calls, to make pursuit for jokes i.e. using the street cams
- this information is written (can/may be written down) to CDRs, this allows to post-process data for many different reasons
OR..
The 3GPP Spec defines User Location Information in 29060 as
The "User Location Information" IE is used to indicate CGI/SAI/RAI of where the MS is currently located.
..use your imagination for what reasons you could use this knowledge.
I know cases that based on this someone proofed he was not in place someone else claim he was (also the way round cases, he was in place he claims he was not) - in court.