The Internet was the result of some visionary thinking by people in the early 1960s who saw great potential value in allowing computers to share information on research and development in scientific and military fields. J.C.R. Licklider of MIT first proposed a global network of computers in 1962, and moved over to the Defense Advanced Research Projects Agency (DARPA) in late 1962 to head the work to develop it. Leonard Kleinrock of MIT and later UCLA developed the theory of packet switching, which was to form the basis of Internet connections. Lawrence Roberts of MIT connected a Massachusetts computer with a California computer in 1965 over dial-up telephone lines. It showed the feasibility of wide area networking, but also showed that the telephone line's circuit switching was inadequate. Kleinrock's packet switching theory was confirmed. Roberts moved over to DARPA in 1966 and developed his plan for ARPANET. These visionaries and many more left unnamed here are the real founders of the Internet.
The Internet, then known as ARPANET, was brought online in 1969 under a contract let by the renamed Advanced Research Projects Agency (ARPA) which initially connected four major computers at universities in the southwestern US (UCLA, Stanford Research Institute, UCSB, and the University of Utah). Even at this early stage, it should be noted that the networking research incorporated both work on the underlying network and work on how to utilize the network. This tradition continues to this day. Computers were added quickly to the ARPANET during the following years, and work proceeded on completing a functionally complete Host-to-Host protocol and other network software. In December 1970 the Network Working Group (NWG) working under S. Crocker finished the initial ARPANET Host-to-Host protocol, called the Network Control Protocol (NCP). As the ARPANET sites completed implementing NCP during the period 1971-1972, the network users finally could begin to develop applications.
The original ARPANET grew into the Internet. Internet was based on the idea that there would be multiple independent networks of rather arbitrary design, beginning with the ARPANET as the pioneering packet switching network, but soon to include packet satellite networks, ground-based packet radio networks and other networks. The Internet as we now know it embodies a key underlying technical idea, namely that of open architecture networking.
Kahn began work on a communications-oriented set of operating system principles while at BBN and documented some of his early thoughts in an internal BBN memorandum entitled "Communications Principles for Operating Systems". At this point he realized it would be necessary to learn the implementation details of each operating system to have a chance to embed any new protocols in an efficient way. Thus, in the spring of 1973, after starting the internetting effort, he asked Vint Cerf (then at Stanford) to work with him on the detailed design of the protocol. Cerf had been intimately involved in the original NCP design and development and already had the knowledge about interfacing to existing operating systems. So armed with Kahn's architectural approach to the communications side and with Cerf's NCP experience, they teamed up to spell out the details of what became TCP/IP.
The original Cerf/Kahn paper on the Internet described one protocol, called TCP, which provided all the transport and forwarding services in the Internet. Kahn had intended that the TCP protocol support a range of transport services, from the totally reliable sequenced delivery of data (virtual circuit model) to a datagram service in which the application made direct use of the underlying network service, which might imply occasional lost, corrupted or reordered packets. However, the initial effort to implement TCP resulted in a version that only allowed for virtual circuits. This model worked fine for file transfer and remote login applications, but some of the early work on advanced network applications, in particular packet voice in the 1970s, made clear that in some cases packet losses should not be corrected by TCP, but should be left to the application to deal with. This led to a reorganization of the original TCP into two protocols, the simple IP which provided only for addressing and forwarding of individual packets, and the separate TCP, which was concerned with service features such as flow control and recovery from lost packets. For those applications that did not want the services of TCP, an alternative called the User Datagram Protocol (UDP) was added in order to provide direct access to the basic service of IP.
One of the more interesting challenges was the transition of the ARPANET host protocol from NCP to TCP/IP as of January 1, 1983. This was a "flag-day" style transition, requiring all hosts to convert simultaneously or be left having to communicate via rather ad-hoc mechanisms. This transition was carefully planned within the community over several years before it actually took place and went surprisingly smoothly (but resulted in a distribution of buttons saying "I survived the TCP/IP transition").
Thus, by 1985, Internet was already well established as a technology supporting a broad community of researchers and developers, and was beginning to be used by other communities for daily computer communications. Electronic mail was being used broadly across several communities, often with different systems, but interconnection between different mail systems was demonstrating the utility of broad based electronic communications between people.
As the current rapid expansion of the Internet is fueled by the realization of its capability to promote information sharing, we should understand that the network's first role in information sharing was sharing the information about its own design and operation through the RFC (Request for Comments) documents. This unique method for evolving new capabilities in the network will continue to be critical to future evolution of the Internet.
On October 24, 1995, the FNC unanimously passed a resolution defining the term Internet. This definition was developed in consultation with members of the internet and intellectual property rights communities. RESOLUTION: The Federal Networking Council (FNC) agrees that the following language reflects our definition of the term "Internet". "Internet" refers to the global information system that -- (i) is logically linked together by a globally unique address space based on the Internet Protocol (IP) or its subsequent extensions/follow-ons; (ii) is able to support communications using the Transmission Control Protocol/Internet Protocol (TCP/IP) suite or its subsequent extensions/follow-ons, and/or other IP-compatible protocols; and (iii) provides, uses or makes accessible, either publicly or privately, high level services layered on the communications and related infrastructure described herein.
The Internet has changed much in the two decades since it came into existence. It was conceived in the era of time-sharing, but has survived into the era of personal computers, client-server and peer-to-peer computing, and the network computer. It was designed before LANs existed, but has accommodated that new network technology, as well as the more recent ATM and frame switched services. It was envisioned as supporting a range of functions from file sharing and remote login to resource sharing and collaboration, and has spawned electronic mail and more recently the World Wide Web. But most important, it started as the creation of a small band of dedicated researchers, and has grown to be a commercial success with billions of dollars of annual investment.
One should not conclude that the Internet has now finished changing. The Internet, although a network in name and geography, is a creature of the computer, not the traditional network of the telephone or television industry. It will, indeed it must, continue to change and evolve at the speed of the computer industry if it is to remain relevant. It is now changing to provide new services such as real time transport, in order to support, for example, audio and video streams.
Sources:
http://www.internetsociety.org/internet/what-internet/history-internet/brief-history-internet
http://www.walthowe.com/navnet/history.html