Your handheld will connect to the BES either direct (if the routing from your WLAN to your BES is there) or via the NOC (if it isn't). I believe that encryption works in exactly the same way as normal (at the very least, packets caught by Wireshark looked pretty encrypted to me!).
The exception is a browsing using a third browser option, which I think is called "WiFi Browser". Using that isn't the default and requests made by that go direct.
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