A method of controlling a mobile terminal. The method includes entering a schedule creation mode; displaying, via a display of the mobile terminal, an add option for adding a location based alarm based on the entered schedule creation mode and a list of contacts included in a contact list associated with the mobile terminal; receiving a selection signal indicting a selection of one of the displayed list of contacts; inputting the selected contact as a participant, a reminder name and a physical location that the location based alarm is to be output when at least one of the participant and the mobile terminal is within a near predetermined distance from the physical location; and when the selected contact is not registered to a Location Based Service (LBS), transmitting an invitation message recommending a subscription to the LBS to the participant.