Questions on Apple TV usage

Does Apple TV require an internet connection/WiFi to work?

My primary usages with Apple TV to mirror my iPhone's screen onto my 40" TV. I would like to see local Photos, local Videos stored on my phone and play games on large screen by mirroring the screen onto TV. My sole need for phone then woyuld be to use it as a controller.

I have read here that:

http://support.apple.com/kb/ht2208

We need WiFi only for NetFlix etc. But since I am outside United States, I cannot be using these anyway.

So my question is, is this setup feasible? How will the resolution scale up? Does this requires that both the phone and TV to be connected to same WiFi?