It has GPRS and 3G support which are subscription based network services, you need a data plan for it. The free internet option you are probably thinking of is WLAN, which is indeed free where available.
The amount of applications available on the phone in the sales package varies from country to country, from network to network. There are however plenty of free games and applications available to download from Nokia as well as commercial applications and games.
Here are some sites:
http://download.nokia.com (free and commercial apps, also available in the phone under the Download! icon)
http://mosh.nokia.com (free and shareware games, apps and content - look for Quake II there)
http://www.n-gage.com (excellent commercial games from known publishing houses)
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Nokia N95 8GB Applications?
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