How to connect to Wi-Fi when working with Gamekit?

I want to establish a connection between two devices via WiFi using GameKit. Apple documentation says

If an internet connection is selected, your application should reject the conversation partner selection dialog and submit its own user interface to complete the connection.

This is what I do

- (void)peerPickerController:(GKPeerPickerController *)picker didSelectConnectionType:(GKPeerPickerConnectionType)type
{
if (type == GKPeerPickerConnectionTypeOnline) 
{
    picker.delegate = nil;
    [picker dismiss];
    [picker autorelease];

    [alert setTitle:@"\n\n\n"];
    [alert setMessage:@"Looking for other iPads, iPhones or iPod touches..."];
    [alert addButtonWithTitle:@"Cancel"];

    UIActivityIndicatorView *progress   = [[UIActivityIndicatorView alloc] initWithFrame:CGRectMake(125, 50, 30, 30)];
    progress.activityIndicatorViewStyle = UIActivityIndicatorViewStyleWhiteLarge;
    [alert addSubview:progress];
    [progress startAnimating];
    [alert show];
}
}

Ok, I introduced my own interface. So, what is next? How to connect? How to start looking for peers?