The History of the Internet

Backbone:50Kbps ARPANET, Hosts:31
Ray Tomlinson (BBN) modified his email program for ARPANET and it became an instant hit. The Telnet specification was defined. The first public demonstration of ARPANET was held in the basement of the Washington Hilton Hotel. The demonstration allowed the public to come in and use the ARPANET, running applications all over the U.S.

Much to the surprise of the people at AT&T who were skeptical about whether it would work, the demo was a booming success.