No, that's not correct. It has nothing to do with satellites, and it NOT controlled, activated, or operated by law enforcement (or any other gov't agency for that matter).
What the cell phone company does, at the request of authorities, is "ping" the cell phone (send a brief signal). They can then triangulate the general area of where the cell phone is using the cell towers that register the phone's signal to help authorities narrow down their search to a specific area.
True, some cell phones now have GPS capabilities, but it's not widespread yet, plus I'm not sure there's any such GPS technology that works even when the phone is off.