You can use a wireless connection if you have a wireless router
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You purchase a router in ether wireless or wired for your PS3 or you can connect wired with an ethernet cable directly between Cable or DSL modem and the back of your PS3. Routers allow you to split your internet connection and provide a connection to multiple devices like to your PC, PS3, Smart TV, and a laptop. Routers can be wired with output ports for ethernet cables or wireless for WiFi connections and those normally include outputs for wired connections. They are installed by plugging a ethernet cable from it's input into your modem's output.
You can make a wired connection with an ethernet cable instead of wireless. You can increase the Internet service with your internet service provider. You can test your internet service connection with the PS3 network connection test and see if moving you router location helps.
The internet costs whatever your provider charges and the only additional charges for the PS3 would be if you rented a wired or wireless router or other equipment to allow a connection
no When connecting my PS3 wirelessly I found better results to maintain the connection with the additional of security restrictions. When I put password and security on the router and into the network settings for the PS3 the PS3 become connected faster and not break connection which sometimes happened before the security was added. However a wired connection gave me even greater speeds on the PS3 connection tests and so I went with the best connection possible a wired connection. I made the same sort of decision on the HDMI cable when I purchased a higher quality Sony cable to connect it to the Sony HDTV.
The wire is an ethernet cable and you must have internet service and not just the wire. The Ethernet Cable plugs into the back of the PS3 and into the router or modem for a wired connection that will not be established until after you have gone to the settings menu for network connections and set up the automatic connection