In recent years, there has been a rapid growth in what is called Internet of Things (IoT). IoT can be described as the interconnectedness of all things, where we as people are able to interact with our physical environment using wireless communications. One of the core wireless technologies that has been a driving force in the growth of IoT is Bluetooth Low Energy (BLE). This thesis focuses on proximity-based and location-based services using BLE beacons and smartphone devices. Moreover, this thesis proposes that BLE beacons are capable of providing proximity and location-based services, both indoors and outdoors with a suitable level of precision and accuracy. Proximity and location using BLE beacons are realized using a Received Signal Strength Indicator (RSSI) technique. The results of numerous experiments provide sufficient evidence that BLE beacons are a viable and highly scalable option for such services in the framework of IoT.