That's true. The free market was mostly [1] absent from the research into packet switching in the 1960s, the actual deployment in 1969 of the packet-switched network that became the internet, the invention of email, FTP, the domain name system, the mailing list, newsgroups, IRC, the MMORPG (initially referred to as a multi-user domain or a MUD), the web, webmail, the blog, the RSS feed, the wiki and Wikipedia, but, yeah, starting about 1987, profit-motivated ISPs started slowly to appear that offered access to the internet to organizations and individuals.
1: I use the qualifier "mostly" because the government did farm out most research and engineering tasks to a handful of for-profit companies (Bolt Beranak Newman, the Mitre Corporation, SRI International) that specialized in governmental contracts.