I might be wrong but hasn't the Kindle been offering a free internet access to browse its store and even some online content for a while now?
So you end up paying for it in the end, since say, $0.05 of every dollar (totally made up figure) ends up going to AT&T.
So, to coin a somewhat wordy phrase, it's free-as-in-jet-fuel-when-you-buy-a-plane-ticket.