No, you do not need the internet or an internet connection while configuring the skyBeacon. The "Wi-Fi" connection is simply a radio signal that connects the skyBeacon application on your mobile device to the skyBeacon. You will see a warning of "no internet connection," but that doesn't matter because you are not trying to connect to the internet; you are using the Wi-Fi radio signal as a connection for the mobile app to communicate with the skyBeacon.