Hi how does this work?

I have plugged a wire from my phone in to the line input and plugged my phone in to phone1/2 but i dont get a dial tone

but looking here there is a funny dongle, do i need this?
http://www.draytek.co.uk/products/vigor2820.html

I know VOIP wont work without another service like skype or sipgate but i at least thought it would work like a pass through.