“Does the base unit have to be next to our modem/router? I am having a hard time finding a clear answer.”
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It depends, It does not have to be next to the modem/router unless your Internet bandwidth is heavily used and you need the Ooma's quality of service (QoS) capabilities. In that case, you need to wire the unit in-between your provider's upstream device and your router. I tested it in my home (600Mbps down/20Mbps up) with it hooked up to my internal WiFi and it worked just fine no matter what we were using the Internet for. When I put it at my parent's home (20 Mbps down/up) on their internal WiFi it would drop a bit with heavy usage (streaming Amazon and Netflix simultaneously while also downloading patches). I then moved it to be hardwired between my parent's router and their upstream modem and it worked great even with heavy usage.
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