You do need phone line for Internet
This is only true for ADSL broadband (BT, Sky, etc) services. If you're in a cable area (think all owned by Virgin now), a phone line isn't necessary. But as I said in my previous post, the bundles are usually cheaper if you keep it.
I wish they didn't keep the requirement for a phone line for ADSL! You don't need it in some other countries, have been able to get DSL only services (called Naked DSL, in Australia at least) for years now.