It uses spare frequency on the mains wiring to send and receive information alongside or on top of the AC. This is why quality of wiring is important. If your wiring is pants so too will be your connection.
There was talk of getting Internet via mains a few years back but I've not heard anything about it for years. I suspect that it's just too slow to be of much use once you go beyond a few hundred metres.
Just Ethernet connectivity then I'm afraid. They'll use whatever Internet connection you feed them and allow you to access said Internet anywhere in your own house through a wall socket, although you will find that it may struggle across different ring circuits.
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