No, Satellite Internet does not require telephone lines, but instead uses a satellite dish for two-way data communications. This consists of a two-foot by three-foot dish, an uplink modem and a downlink modem, and the coaxial cables between the dish and the modem. Satellite Internet service providers beam the data directly from the satellites that are hovering in space above the equator. This is why they don’t need to run hard wires to bring the internet to customers. Satellite internet has an advantage over dial-up and other options because it can get it virtually anywhere. Since it doesn’t need to have any cabling with it, there is no reason why it can’t be used anywhere in the house or anywhere around the world. It is always best to direct the satellite dish to the south (if in the northern hemisphere) where there is a clear view to the equator because of where the satellites are placed.
Because the signal is coming from satellites in space there are factors that can interfere with the signals. Heavy rain, trees, buildings or mountain ranges in between the dish and satellite can cause disturbances in the signal. This is something that companies have been working on though by designing satellites that work in lower orbits and can deliver a more reliable and stronger signal. More satellite points have been put up as well to add coverage. With minor inconveniences satellite internet is still 10x to 35x faster than dialup and it doesn’t have a phone line like dialup does.