Free-to-Play in November. I am withholding judgment until I see more details, but I'm don't think this affects my decision to finish out my Agent's story, as well as Sctrz' BH, before the game bills again in mid-August. I have felt an ennui about the game for a couple months now, between playing the affection and LS/DS meta-games instead of really playing my characters the way I want and the extra-game antics of the EA/BioWare team like poor CS and unjustified bans, etc.
The character stories will still be fully accessible to all players regardless of subscription status. But other features like warzones, flashpoints, and space missions will be limited for F2P players, and operations will be restricted to only subscription players. Bank, inventory, and in-game funds will also be limited.
The real segregation here is between people who wanted and still want KOTOR 3 and those who expected an MMO based on KOTOR. I haven't seen whether the basic game key will need to be purchased, or if a player can simply download the game and start playing, like the current trial. So if you want to play KOTOR 3 without the subscription, this is your big chance.