Quote from refrainfromit
How exactly does multiplayer work? Is it like bluetooth? Or do I have to have them both connected to the internet?
HOW MULTIPLAYER WORKS IN MINECRAFT POCKET EDITION:
So far it only works for LAN (Local Area Network)
SO you need all the devices that are going to play together on a LAN, you don't have to be connected to the Internet, just make sure they are all connected to the same network. I also have thought it may be possible for one device to host a network and connect that way, so if you are on the move you can play anywhere, although I have not tested this.
1. Have one of the devices start a game, ensure that 'server is visible' option is on, you can check this when you are in game and press the arrow back button or menu button on your phone
2. Then on the other devices select 'Join Game" it will begin to find other games on the LAN network.
3. It then should show any games it finds. It will show the name you set on the options and IP address of the game started on the other device
4. Select it and you will join the game.