They say even without an internet connection, you can still have a network if you have a hub/router/switch and 2 or more computers. How does it works?

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The Internet is not required for you to create a private local area network. To create a local area network, you need at least two network devices, a common protocol (such as TCP/IP) and a device that connects your hosts together, such as a network switch.

When you connects 2 or more PCs connected through HUB/SWITCH/ROUTER, they create a LAN. When you use a HUB all are connected physically. Your OS will have network module and TCP/IP stack will be installed. Configure some IP addresses to those PCs and make sure that they are in same subnet. Then you can avail services like sharing FTP/REMOTE connection all these can possible.

This doesn't need any internet connection.

Or, if there are only two computers and you want a very inexpensive option without needing a switch hub, you could just buy a standard RJ45 'Crossover' cable. (If your computers have Gigabit Ethernet adapters see below) This will allow you to network two computers (maximum) directly.

Windows 7 Crossover Cable Network Set-up.

If there are more than two computers, or you are planning to introduce more computers later then a Switch Hub is what you need. Buy a Gigabit capable Switch Hub. (10/100/1000)

If you are setting up systems that you know use Gigabit Ethernet then you need to buy a Gigabit Network cable. If your computers are relatively new, then it won't even need to be a crossover cable either, as the adapters will pick this up. (Check the specifications of your network adapters for this feature: MDI/MDIX. If they have this then you won't need a Crossover Cable, just a standard Gigabit cable will do)

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