I've been taking Skype lessons with a teacher in New York now for a couple of years.
Works fantastic. About the only thing we cannot do is play together because of the slight lag. Every now and then there is a technical problem that may mean a lesson postponement or reschedule, but that is pretty rare.
I am grateful that this technology exists which can put me, living in a remote part of Australia, in touch *real time* with one of the best guitar teachers in New York... 20 years ago this would have been all science fiction!