According to the guys over at GearLive, Apple has begun distributing beta 1 of the iPhone OS 2.1 firmware.

The report cites that iPhone OS 2.1 will include new Core Location features which could be implemented to create true GPS location sensitive applications, such as tracking direction and speed when traveling.

Additional features such as Push Application APIs are expected, these components allowing the handset to process notifications in the background.

Apple is also offering developer access to a new version of the iPhone SDK, which cannot yet be used to submit Apps to the App Store.

If you or anyone you know has gotten your hands on the beta and can offer any information on it, please let us know in the comments or forums.