If the power goes off, Smartee will be turned off but the smart objects that runs with batteries will keep running, communicating with each other. For example, if the power goes off and there’s an intruder, it can be detected by the Sensee and alert the alarm system which can activate.
If the internet connection goes off, you will still be able to control all your local devices from the TV . These are all Zigbee and Z-Wave devices such us door locks, thermostats, smart switchees, smart plugs, etc. And WiFi enabled devices such us Sonos, Philips Hue and others.
Only the devices that work with cloud will not be able to be controlled.