The interest in commercial use of the Internet became a hotly debated topic. Although commercial use was forbidden, the exact definition of commercial use could be unclear and subjective. UUCPNet and the X.25 IPSS had no such restrictions, which would eventually see the official barring of UUCPNet use of ARPANET and NSFNet connections. Some UUCP links still remained connecting to these networks however, as administrators cast a blind eye to their operation.

During the late 1980s, the first Internet service provider (ISP) companies were formed. Companies like PSINet, UUNET, Netcom, and Portal Software were formed to provide service to the regional research networks and provide alternate network access, UUCP-based email and Usenet News to the public. The first dial-up in the West Coast, was Best Internet[2] - now Verio Communications, opened in 1986. The first dialup ISP in the East was world.std.com, opened in 1989.

This caused controversy amongst university users, who were outraged at the idea of noneducational use of their networks. Eventually, it was the commercial Internet service providers who brought prices low enough that junior colleges and other schools could afford to participate in the new arenas of education and research.

By 1990, ARPANET had been overtaken and replaced by newer networking technologies and the project came to a close. In 1994, the NSFNet, now renamed ANSNET (Advanced Networks and Services) and allowing non-profit corporations access, lost its standing as the backbone of the Internet. Both government institutions and competing commercial providers created their own backbones and interconnections. Regional network access points (NAPs) became the primary interconnections between the many networks and the final commercial restrictions ended.