I wanted to do more testing so I deleted it 
There should be no reason why they can’t since rtsp is meant to be local here.
But, I’m having difficultly getting it to stay working while fully blocking the internet. Rtsp dies within 24 hours if I fully block it.
It might be that I’m blocking too much so am currently trying to test rtsp ports open with those defined.
For some reason, I block the ports here that should connect to the server and Wyze app will continue to connect remotely so am not fully sure what’s going on there. If I take a wide range, it gets blocked. https://support.wyze.com/hc/en-us/articles/360031479511-What-ports-are-necessary-for-Wyze-Cams-to-operate-
(I see someone above shows an 8883 which isn’t on Wyze list there.)
However, rtsp stays working for many hours so I would have expected that its not being blocked. Either way, with the current test, I can reopen rtsp and it works while remote is blocked. So will see what happens probably tomorrow.
It is difficult to say what ports people are letting through as well or whatever and how that’s interacting. If internet is blocked then remote viewing of the cam from cellular data connection shouldn’t happen.
If you’re saying that you remove the outside modem and it keeps working then its likely that I’m getting too much blocked and for whatever reason, its allowed for x amount of hours despite remote not being this way.
However, disconnecting the modem, you will have all ports still functioning. That’s a bit of a different thing. Most people cannot disconnect their internet so the router must block the device. Somewhat invalidates the test.
If you get it to stay working while still having an outside internet connection on the network, let me know how or don’t. Your choice.
By the way, I’m not competing with you as to who’s right and who’s wrong. Just not doing testing that way and I know what I see. Your test is valid under that use. That’s fine. Its good to know 
(Also my test has a router in between and a router at the internet. The cam is connected to the AP router and blocked ports at the internet one. This could also change the results in theory.)
Further info to validate: I rebooted the router and rtsp still works. Remote does not. Thus local only. Tomorrow, will know for sure. As it stands, rtsp is not blocked. If I was wrong previously or not, will update this post, just below this line.
I adjust the ports further to increase openness and it already went offline. Going to try with the other router.