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Yes the internet access is free if you have the internet connection already in your house . Besides the cost of the internet if you don't already have it you may also need to purchase a router to allow another internet connection if you don't have WiFi. What is really free is the use of the PSN and anything else you use your PS3 while on the internet that does not have a charge for use. Following E3 2010, Sony introduced a top tier level of PlayStation Network known as PlayStation Plus. The service is available for $49.99 a year, and includes such features as early access to game betas and free downloads from the PlayStation Store. However, the current features of PlayStation Network, including online play, will remain free to all users.
Your PS3 needs an internet connection and you can download demos for free on the PlayStation Network.
Downloads are sold they are not free and the Playstation Downloads that are free from the Playstation Plus are not free they require membership in Playstation Plus and expire if your Playstation Plus membership expires.
You can't play PlayStation games on the Internet, but if you have a PlayStation 3, you can go on the PlayStation network and play with other people through the Internet.
All PlayStation 3 users are entitled to the use of the unified PlayStation Network online service free of charge. The only requirement is a broadband internet connection and registration with a valid email address.