It will do both (same as every android phone ive had) use GPS satellites and/or cell towers to triangulate.
As for the off-line maps. I dont know mate
EDIT see above
In maps you have an option to store an area offline, not a whole country, but cities should not be a problem. Annoyingly, the offline data is not used by Navigation. It will only work in maps (old school directions).
Maybe I don't know what I'm talking about, but I've used off-line maps (like Rmaps, for example), and without a data connection (GPS only)... and from what I could tell, it worked perfectly.
So, based on my limited knowledge, it will do both.
(I'm not going to use words like 'I know for a fact', or 'It worked for me' anymore, without first stating the disclaimer "Maybe I don't know what I'm talking about". lol)
Because YMMV... and MINE DOES, apparently.
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