The research team from University of California, Berkeley, worked in collaboration with experts at Nokia to develop the software that collects GPS data from mobile phones in moving vehicles, and creates traffic maps.
These traffic maps can be accessed through Internet or sent to the cellphone to provide local traffic analysis, reports New Scientist.
This software could be downloaded free from the Internet.
Alex Bayen at UC Berkeley said that if enough people download the free software, the system should help relieve congestion, even on small intercity roads.
Bayen ensured that the software could not be misused for the system anonymises GPS data and it will be impossible to track individual cars.