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It has been many, many years since I've needed to configure DDR. However, unlike a console, which has a dedicated port, telnet, I believe, needs an IP. Now, it doesn't have to be the interface your connection physically comes in on, but it does need to be reachable by the telnet client.
BTW, some routers have an aux port that you can configure for OOB access, and when you do, I don't believe they require an IP address. For those, you would use a dial-up terminal client. (Believe some software can do both functions.)
