Thats what I was told and my Ipad 2 3g/64gb works, I have not subscribed to a cell service (it has no sim card installed) and there is no wifi out where we boat. It works.......the following is a copy and paste from the the "IOS 5: Understanding location services" on the Apple site*http://support.apple.com/kb/HT4995
GPS accuracy varies depending on the number of visible GPS satellites. Locating all visible satellites can take several minutes, with accuracy gradually increasing over time. Use these tips to improve GPS accuracy:
Maintain a clear view of the horizon in several directions. Keep in mind that walls, vehicle roofs, tall buildings, mountains, and other obstructions can block line of sight to GPS satellites. When this occurs, your device will automatically use Wi-Fi or cellular networks to determine your position, until the GPS satellites are visible again.
-- Edited by rochepoint on Thursday 2nd of February 2012 07:00:23 PM