It operates over TCP and UDP port 3702 and uses IP multicast address 239.255.255.250. As the name suggests, the actual communication between nodes is done using web services standards, notably SOAP-over-UDP.
With WS-Discovery, the discovery tool puts SSDP queries on the network from its unicast address to 239.255.255.250 multicast address, sending them to the well-known UDP port 3702.