That is correct. Most webcams are USB connected to a computer and the webcam has its own driver software. Webcams need a service such as Skype or some other service like it and the other party must use an identical format. At present I don't know of a universal format that will work with all webcams. Webcam users must all be tied in to a common provider such as Skype.
Your webcam sits anywhere you want it close to your computer USB connected and Skype furnishes the software for free (free version) I've used Skype for some time now with my son in Seattle, Wa. and have excellent picture most of the time. It is my understanding that dial-up is jerky. I personally use broadband and have little problem with Skype here in Falling Waters, WV. Comcast is my internet connection and is quite reliable. Good luck to you and your hookup.