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You never heard of dedicated servers?
Anyhow, it probably means the network model would be the same as we have now. One player's XB1 acts as host. Generally it means that person has host advantage and many games will be laggy.
If you play customs and had hoped for network improvements through dedicated servers, this is a sad announcement.
As I've experienced in the past, it's the things you take for granted that bite you in the ass when it comes to game releases.