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Satellite companies broadcast signals from giant satellites in the atmosphere directly to your satellite dish on the outside of your home. From there, the signal passes through a coaxial cable to your receiver. The receiver converts the signal from the satellite dish into a signal that can be sent and viewed on your television. A phone line is required for ordering Pay Per View movies and for billing purposes. The phone line plugs into a jack in the back of the receiver most likely labelled "Line".