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Yes, in some form or fashion you do have to have an internet service provider in order to get internet service. You can possibly use your cell phone service provider for an internet connection by setting up a smart phone as an internet hotspot, which is what I am having to do at this time. This is similar to a local retailer or other entity providing a public access internet hotspot, which may be more risky in some cases. In this case, you do not need a modem as your smart phone or local hotspot acts as the modem. There may be other possibilities of getting internet service with out having an internet provider, but I'm not familiar with those. This modem can stand alone if you do not need a router for Wifi connection to other devices as well, such as a printer. In the case of using the modem as a stand alone, you would use a Ethernet cable connected directly from your modem to your computer.
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