Well, actually, both are valid responses, I mean, Android provides 3 types of location providers:
GPS_PROVIDER: This provider determines location using satellites. Depending on
conditions, this provider may take a while to return a location fix.
NETWORK_PROVIDER: This provider determines location based on availability of cell
tower and WiFi access points. Results are retrieved by means of
a network lookup.
PASSIVE_PROVIDER: This provider can be used to passively receive location updates
when other applications or services request them without
actually requesting the locations yourself. This provider will
return locations generated by other providers.
When you chose Network Location Provider, you're both accessing and providing information to Google's location service and, in order to provide best possible location, this mechanism uses, not only Cell signal strength, but also WiFi information to triangulate the position. I would recommend this post to getting started to Android Location: Getting Started With Android Location
Actually, this is also the "magic" behind Assisted GPS (AGPS): slowest part of retrieving information in GPS device is looking for satellites, as you've to look for all available ones (30) because you actually don't know your initial location. With AGPS, a rough location estimation is available thanks to Network Based Location, then, you can limit significantly your satellite list (to only satellites available in your estimated position), speeding up the process a lot.
Some interesting articles regarding this: Android Location Providers, Mobile Phone Tracking, Android Location Manager class and Android Location Strategies