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It likely means that your internet connection was too weak and the PS3 could not get enough information in time. It is much more likely, that your PS3 never connected correctly to your wireless internet source.

Some people feel that since there PS3 Has WiFi all they need to get the internet is to go to the settings and connect. This is not the case however your PS3 may find someone else wireless signal and will try to connect to it. All the ads showing features for the PS3 state Online connectivity requires broadband internet service and network devices such as a DSL or cable modem. Most people who have this also require a router and an ethernet cable or a wireless router to allow connection of more than one device to there internet service. Once the PS3 is connected with an ethernet cable or you have a wireless router then you go to the PS3 main menu settings and then the Network setting then network connections. After I purchased my wireless router and did not password protect it I had the same problems you indicated and they decreased with password protected connection. I did switch to a wired system to get the best signal test results.

The following title was added as a related link for Playstation Network Knowledge Center information on the subject of internet connections for the PS3. It provides information on easy and custom set ups for both WiFi and ethernet connections for the PS3

How do I connect the PlayStation 3 computer entertainment system to the Internet?
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Q: What does it mean if you test your wireless connection for ps3 and it says the key information exchange timed out?
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