what would someone do with ground based transponders? Surely only aircraft use them?
Lots of ground vehicles have ModeS. For example, Heathrow - see
http://www.airframes.org/reg/egllground43BFFA AOSU5 - LHR ground vehicle GY05 PKO, Mitsubishi Shogun
43BFFB AOSU6 - LHR ground vehicle BF09 LCA Land Rover
43BFFD AFS1 - LHR ground vehicle GY06 BXK, Mitsubishi Shogun
43BFF6 AOSU3 - LHR ground vehicle GY05 KWZ, Mitsubishi Shogun
43BFF8 AFS10 - LHR ground vehicle GY05 OGR, Mitsubishi Shogun
43BFFF TELS1 - LHR ground vehicle, Mitsubishi L200
43BFFC AOSU7 - LHR ground vehicle GV56 LJY, Mitsubishi 200
SBS-1 users have even designed silhouettes for these types of "aircraft" - see
http://www.sbsbst.co.uk/iank/Non%20ICAO.htm