Yes, the ipod touch has to be on a network.
And the GPS device is far from foolproof, sorry, I had Whistle GPS tags for my dogs and they proved worthless. Sadie's kept saying she was at home when she wasn't. Jack's quit working the first time we took a trip. The idea is great- the technology isn't there, at least, not for Whistle, and I suspect most are the same at this point in time. Jack's worked for more than six months, Sadie's quit working sooner but was replaced under warranty. (Jack's was replaced, too, and the replacement didn't work.) Basically the same kind of device, on the Verizon network for $7-$10 a month.
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