Yes the German is right!
It is just a usb-modem! They come in alot of shapes and forms, could look like this!
The range depends on the cellular network! GSM has a range for normal use up to about 38 KM, and UMTS is not impossible to reach 20 KM (tried that myself)!
The reason for the Y-wire is that it gives more power to the dongle, better reception, faster speed, etc!