Background of the Internet

---------

       The Internet. The Internet is a global collection of thousands of interconnected computer networks that enable commercial organizations, educational institutions, governmental agencies and individuals to communicate electronically, access and share information and conduct business. The Internet originated with the ARPAnet, a restricted network started in 1969 by the United States Department of Defense Advanced Research Project Agency to provide efficient and reliable long-distance data communications among the disparate computer systems used by government-funded researchers and organizations. Unlike other public and private telecommunications networks that are managed by businesses, governmental agencies and other entities, the Internet is a cooperative interconnection of many such public and private networks. The networks that comprise the Internet are connected in a variety of ways, including by the public-switched telephone network and by dedicated high speed leased lines. Open communications on the Internet are enabled by TCP/IP, the common Internet communications protocol, which enables communication across the Internet regardless of the hardware and software used.

       Internet Growth. Recent technological advances, including the development of easy-to-use graphical user interfaces (which provide a means of communicating with computers by manipulating icons and "windows," in addition to text), combined with cultural and business changes, have led to the Internet being integrated into the activities of individuals and the operations and strategies of commercial organizations. Individuals increasingly are using computers in their homes for electronic mail, file transfer, remote login, file- sharing and information services. This trend has been facilitated by dramatic increases in cost-effective processing powerand data storage capabilities in personal computers, as well as widespread availability of multimedia, fax/modem, and networking capabilities to the home computing market. Much of the recent growth in Internet use by businesses and individuals has been driven by the emergence of a network of servers and information available on the Internet called the World Wide Web. The World Wide Web, which is based on a client/server model and a set of standards for information access and navigation, can be accessed using software that allows non-technical users to exploit the capabilities of the Internet. The World Wide Web enables users to find, retrieve and link information on the Internet easily and consistently. The development of World Wide Web technology and associated easy-to-use software has made the Internet easier to navigate and more accessible to a larger number of users and for a broader range of applications.

        Internet Services and Software Providers. Until recently, individuals could access the Internet only through their employer or another organization with a direct Internet connection or through traditional on-line services employing closed, proprietary networks that allowed access only to limited Internet resources. With the growth and increasing commercialization of the Internet, a number of companies have emerged to provide Internet software and direct access targeted to individuals. Traditional on-line services have also begun to increase the scope and capacity of their access to the Internet.

       Access providers vary widely in the geographic coverage, customer focus and levels of Internet access provided to subscribers. For example, access providers may concentrate on certain types of subscribers (such as businesses or individuals) that differ substantially in the type of service and support required.

       Providers may also differ according to whether they provide direct or non-direct access to the Internet. Direct access through Internet protocols such as SLIP ("Serial Line Interface Protocol") or PPP ("Point-to-Point Protocol") enable users to establish direct connections to other computers on the Internet, including World Wide Web sites or computers operated by other users, and thereby have access to the full range of Internet resources. The Company offers direct Internet access (as do most regional and national access providers other than on-line service providers). To compete with these direct Internet access providers, consumer on-line services (including America Online and CompuServe) have introduced Internet access gateways.  


Back to the Investor Relations Page
---------

© 1996, MindSpring Enterprises, Inc.