The original network was built over AT&T cables - for some reason, AT&T didn't get the whole concept and rented the lines to ARPA for pennies on the dollar. Originally, there were like 5 computers, at MIT, BBN, Stanford, and a couple other places. As the benefits of file sharing grew, other universities and tech companies were added to the system. Back then, there was a special computer that sat in front of the mainframe that could translate incoming and outgoing network packets, and you couldn't connect to the net without one. Thanks to the brilliant work of Cisco and Xerox PARC (inventers of routers and ethernet, respectively), it became simple to add all kinds of computers to the network in the 80s.
So alot of work goes into sending a "whatup" message on ICQ - it might travel around the country to get to the next cubicle!
Basic history of the internet - don't use this in a research paper. Instead, read "Nerds 2.0.1" for an easy to read non-tech history, with pictures and anecdotes.