basically uses 3G /4G network to download video onto your smartphone, the long and short of it.
They, if they reach their money goal will give you the hardware and software for the same. nice video too
Here is the link to read and support them if you want to
http://www.indiegogo.com/projects/sky-drone-fpv
www.youtube.com/watch?feature=player_embedded&v=aT2Gzpv0T-U