To answer your question, "yes".
In your image, the twisted pair connection is Ethernet, carrying digital information in the form of a square wave.
To be able to transmit this on a telephone circuit (ADSL) which is designed for analog transmission, the square wave needs to be `modulated` into an analog signal that is compatible with the phone line. The analog signals are above the human hearing range, but usually a DSL splitter is installed to pass the low frequencies to telephone equipment and to prevent interference with the higher frequencies, such as reflections and ringing (not phone ringing, but more like signals bouncing back and forth).
You can read more about modulation at Wikipedia.