Each device communicates to the Internet via WiFi and can be controlled via any iOS device (the company is also developing Android software) from anywhere on the planet.
If you were a security researcher or a digital forensics person you would hook your device up to a WiFi network that you controlled, and you would watch the traffic your device is sending.
Many analysts suspect that the device, completely designed andcontrolled by the company, will power the direct sale of lots of books, music, videos, and games.