Establishing the connection
It logs in to the newsserver with your credentials — usually over several connections at once and encrypted via SSL.
Browsing newsgroups
It fetches the list of newsgroups and the articles they contain and makes them searchable for you.
Downloading articles in parallel
Instead of fetching one article after another, it downloads many at the same time. Only that way does a fast line actually get filled.
More about speedDecoding
The Usenet transports text. Files are converted into text for that purpose, usually with yEnc. The newsreader converts them back.
Reassembling
Thousands of articles become a file again. The newsreader knows the correct order and puts the parts back together.
Repairing and unpacking
If individual parts are missing, it draws on the par files that come with the posting and reconstructs them. If the content is an archive, it unpacks it afterwards.