Yes you will still need to hook up a phone line. The wireless is referring to printing and scanning. Faxing will still require the physical connection to the phone line.
There are a few hp printers however that use eFax, which uses the internet to send and recieve faxes. Those models are the photosmart c510, photosmart 7510, and envy 110. If you do send more than 20 faxes a month though you will need a paid account with efax.
Jon-W I work on behalf of HP
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