The complex matrix of globally connected computer networks known today as the Internet is the product of past national-defense projects whose goals were to keep the United States ahead in the cold war’s arms race. Following the 1957 launch of the Soviet Union’s first satellite, Sputnik I, the U.S. Department of Defense (DoD) created the Advanced Research Projects Agency (ARPA), which would develop a nationwide communications network to help protect the United States against nuclear attacks from space. The 1960s saw the development of more advanced methods of data transfer, so that by 1969 the first widearea computer communications network, called Advanced Research Projects Agency Net (ARPANET) was born. Through the 1970s, standards and protocols for communications were set in place, and the addition of England and Norway to the network made it truly global. Electronic mail (e-mail) became a reality, allowing computer users to send “instant” messages around the world. By the 1980s, ARPANET was being used by universities and research institutions to share information, changing the network’s functions from primarily military to educational uses. Also during this decade, the first news groups and on-line interactive games were created as the network continued to develop many useful applications. In 1990 a faster network called NFSNet, allowing more users to get connected to the growing network, replaced ARPANET. This growth in the number of users throughout the 1980s, thanks mainly to the availability of desktop computers during this period, led inevitably to the network’s commercialization by 1994. With more than 3 million Web locations or hosts connected, on-line retailers, banks, and entrepreneurial businesses were established daily, and by 1995 the U.S. government had handed control of the network over to private organizations. The WORLD WIDE WEB (WWW) was born out of this growth, as privatization and the development and standardization of a hypertext computer language allowed users to “browse” the network quickly and efficiently. Business interest in the Internet first began when companies created network “browsers,” computer programs that allowed users to move among the Internet’s “website pages” easily. Then, coupled with the greater availability of desktop computers, businesses offering dial-up connections began to sell their SERVICES, facilitating the Internet’s expansion. By 2001 there were over 31 million Internet host sites. During the 1990s, as more hosts and users became connected, businesses began researching how they could use the Internet for both the transfer of information in and between markets, as well as for direct commerce. Scores of companies, called DOT-COMS (referring to their Internet address endings of .com), sprung up seemingly overnight, selling everything imaginable to “on-line customers.” The excitement over the potential of a new global market that was opening up to businesses of every size and geographic location created an electronic commerce (E-COMMERCE) frenzy. It was not long before the new market was flooded with competitors. However, by 2000, when on-line shopping had become less novel, many of the dot-coms suffered decreasing PROFITS or ceased to exist altogether, creating what was called the “dot-com burnout” and a market crash. In spite of the failures of many eager E-BUSINESSes, the Internet has continued to be a source of high profits for the firms who established themselves on the Internet early and were able to set themselves apart from their competitors. The Internet has also created new markets, specifically in ADVERTISING and communication. Advertisers understand that with more and more people becoming “connected” to the vast network, there will be greater potential to reach them with their messages. In areas of communication, the early 2000s have seen the creation of handheld computers that allow users to receive e-mail messages almost anywhere on the planet. Further development is expected to allow for a “wireless” Internet, thus removing more geographical and physical barriers to the network. By 2001 analysts had agreed that there still remained a great deal of research to be done into how businesses could use Internet technology and INTERNET MARKETING to increase profits. However, continued growth in the number of Internet hosts and users supports the visions of many people who continue to view it as a greatly untapped resource and marketplace frontier. Daniel P. Whicker