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It's almost all CAT5 from the basement to wherever you want the RJ-5 jack placed, usually right near where your computers are. And no, you are not forced to use their router. However, they give you a free relabeled DI-624, labeled as VDI-624 and optimized for fiber connectivity, I guess.
They will need access to your basement to put a battery pack near a power source because if power goes out, your phone will only work for up to 8 hours. But if you're smart, you can replace the 12v battery with a 500hour battery or put it on UPS. :-)
And your phone lines will work just fine as is. They don't replace these wiring. Just that the fiber needs power in the basement.
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