Apple Watch functions without an active service plan

Hi! I wanted to make sure I was understanding something right. I want to get an Apple Watch for someone with a Shaw service plan, which is NOT a supported carrier for Apple Watch. The website says "Apple Watch Series 6 and Apple Watch SE cellular models with an active service plan allow you to make calls, send texts, and so much more — all without your iPhone."

Does this mean that as long as the person has the iPhone nearby (e.g. in their pocket), that the Apple Watch will work via the phone's cellular plan and still have all the functions that any other Apple Watch would have?

Thank you to anyone that helps!