In 1997, the foundation sold off its commercial networking operations to UUNET (now part of Verizon), resulting in an endowment with which it makes grants.

[8] NLnet's history started in April 1982 with the announcement by Teus Hagen as chairman of a major initiative by the European Unix Users Group (EUUG) to develop and provide network services in Europe under the name EUnet.

NLnet was the main node of the EUnet[9] operating out of the Netherlands national center for mathematics and computer science CWI, and played a vital role in spreading first UUCP[10] and later the ARPAnet throughout Europe,[11] earning Hagen and other pioneers a place in the Internet Hall of Fame.

NLnet also pioneered the world's first dial-in and ISDN infrastructure with full country coverage[12] by using the signal wiring[13][14] from the Netherlands rail system owned by Nederlandse Spoorwegen.

[18] MFS was acquired shortly thereafter by Worldcom,[19] which then initiated a takeover bid on MCI and later became a subsidiary of Verizon.