The iphone should work if it has a true GPS unit in addition with the assist from the cells. The below URL and info should be able to answer your question.
Assisted GPS - Wikipedia, the free encyclopedia
In certain conditions, Conventional Standalone GPS has difficulty providing reliable positions in poor signal conditions. For example, when surrounded by tall buildings (resulting in multipath), or when the satellite signals are weakened when a GPS device is used indoors or under trees. Some newer receivers are better at handling these situations.
In addition, when first turned on in these conditions, some non-assisted GPS units may not be able to download the almanac and ephemeris information from the GPS satellites, rendering them unable to function until a clear signal can be received continuously for up to 40 seconds.
An A-GPS receiver can address these problems in several ways, using network elements such as either an assistance server or other data from a network. That assistance generally falls into two categories: a) information used to more quickly acquire satellites, or b) calculations done remotely:
* The assistance server can locate the phone roughly by which cell site it is connected to on the cellular network.
* The assistance server has a good satellite signal, and lots of computation power, so it can compare fragmentary signals relayed to it by cell phones, with the satellite signal it receives directly, and then inform the cell phone or emergency services of the cell phone's position.
* It can supply orbital data and/or almanac for the GPS satellites to the cell phone, enabling the cell phone to lock to the satellites faster in some cases.
* The network can provide atomic time (Accurate Time Assistance)
* Simply capturing a brief snapshot of the GPS signal, with approximate time, for the server to later process into a position.[2]
* By having accurate, surveyed coordinates for the cell site towers, it has better knowledge of ionospheric conditions and other errors affecting the GPS signal than the cell phone alone, enabling more precise calculation of position. (See also Wide Area Augmentation System)