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internet with capital 'I' refers to the Internet as in the world wide web, and what most people think of when you say internet.

Internet with a lowercase 'i' refers to a bunch of small LANS connected together to form some kind of host-to-host packet delivery service. So basically Internet capital I refers to inter-networking at the global level. Whereas internet with a lowercase 'i' refers to it on a much smaller level.

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