Verizon iPhone 4: does this phone have an INTERNAL GPS unit?

I thought it would but when I drove into an area with no cell coverage my pre-installed MAPS did not work?! If the iPhone has an internal GPS should I not have map coverage anyway? My wife's Droid switches to internal gps.... Can anyone educate me on this?
For good turn by turn is the Tom Tom ap for iPhone a good one?
If the iPhone 4 verizon has an internal gps why does tom tom have a car kit for iPhone??????
thank you!

As a test I put my iPhone in Airplane mode and when I opened Maps I was instructed to turn off Airplane mode or use WiFi to show my location on the map. I pressed OK and got another message that my location is unable to be displayed on the map. I know data is used to download the map to show your current location and I guess without some type of data connection the Map app will not function.

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