No - it's usually done using GPS and/or TrafficMaster.
The SatNav unit has a GPS unit inside it (or plugged into it) which it uses to locate your car on the map, which is stored in the SatNav unit (I think).
The TrafficMaster system monitors UK traffic and sends that information to another reciever in your car (I think).
Have you ever seen those blue cameras by the side of the road? They sometimes have aerials on top. Or the blue camera-like things hanging off the back of motorway bridges? Those are all TrafficMaster units, keeping an eye on the road/congestion conditions.