We originally ordered the Tivo HD DVR from DirecTV. When the installers arrived they told us we had to have a phone line to get our local channels.
Based on the "experts" info we went with the HD DVR and hated it. This was half right.
After emails and calls to DirecTV to see if this is true we were told it was not. But again only half right. They told us we did not need a phone line or network connection.
You do need the unit to be able to do it DVR calls via a phone line OR network connection.
Ironic thing is after my initial connection direct thru my router I connected the unit remotely with the DirecTV Cinema Connection Kit and our WiFi network.