Set up apple Tv Using iPhone:
Connect your Apple TV to your television and power and wait until your Apple TV displays the setup screen. Unlock your iOS 7 device and ensure that Bluetooth is enabled. Also ensure that you are connected to the Wi-Fi network you want to use with Apple TV. Then wait for Automatic Setup steps to appear on your iOS device and Apple TV. If you don’t see the Automatic Setup screen, press the Sleep/Wake button to lock your iOS device. Then press the Home button, slide to unlock your device, and try again.
Enter your Apple ID and password When asked, enter your Apple ID information on your iOS device. Give your Apple TV time to finish the setup process. ait for the Home screen to appear
STEP #1: How to set up apple tv without remote
Connect the apple TV to your laptop and reset to factory settings on the apple TV (I did this to get a clean box + latest software update).
STEP #2: How to set up apple tv without remote
Now when apple TV powers up (just hook the HDMI to the TV and the power up the apple TV) it will ask you for a bluetooth keyboard pairing if needed (if you have one, rest is straight forward, if not go to step 3 else step 5). New versions of apple TV software ask you for this pairing, hence the restore to factory + software update on the apple TV.
STEP #3: Set up apple tv Without remote Using iPhone
I do not own a bluetooth keyboard so I downloaded 1keyboard app from the app store for free .
STEP #4: Set up apple tv without remote Using iPhone
Using Keyboard I could emulate a bluetooth keyboard functionality from my mac.
STEP #5: Set up apple tv without remote Using iPhone
Once I had the 1keyboard connected to the apple TV, use up down etc. keys to navigate and setup your apple TV. Then go to settings and pair your ios Remote App.