Is this paraphrasing or plagiarism? - example one

Original Passage: Despite its origin in scientific research and educational pursuits, it did not take long for marketers, advertisers, and public relations practitioners to find the Internet. What they found was an uncharted land that rivaled their wildest dreams. More than a decade later the Web remains the least regulated of all mass media. Although the dot com bust of the early 2000s slowed the commercial expansion of the web, we are beginning to witness a strong rebound in every area, including online advertising. Today, the one feature that best defines the web is its unrelenting commercialism.*

Summary: Although it was originally used in scientific research and education, marketers, advertisers and PR people quickly found the Internet. They were happy to discover a medium that was mostly unregulated and still is more than ten years later. Although there was a slowdown a few years ago due to the dot-com bust, commercial use of the web is increasing again; one of the most obvious aspects of today's web is commercialism.

Is this paraphrasing or plagiarism?

Plagiarism! The writer of this summary altered a few words and phrases, but he did not paraphrase the original paragraph and he failed to give credit to the original source.

 *Ebersole, Samuel E. "On Their Own: Student's Academic Use of the Commercialized Web." Library Trends 53.4 (Spring 2005): 530-38. Academic Search Elite. Web. 13 Sep. 2010.