We are using Civil Location Information Format rather than Geospatial Location Information Format.
Looking into captures I done here, the location is being provided based on AP's location.
See configured location for AP
See results seen in RADIUS-Request for Location-Data
You can find little more explanation under IETF RFC5580 here
Please find also some an old but gold guide for specific RADIUS attributes
under WiNG system.
More documents can be found under this