Yes, precisely.
Also NEVER EVER EVER send anything in every Update(). It's not only horrible practice as it's tied to the framerate, but you will flood the network doing so. Think about it... someone who has 10 FPS will send 10 updates per second. Someone who has 1000 FPS will send 1000 updates per second. You will flood the network in no time, which means that packets will be sent in batches instead -- causing the updates to be jittery (think receiving 50 packets at a time instead of 1 at a time).