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Apparently they have internet in North Korea. Even have a single Internet cafe in Pyongyang according to http://en.wikipedia.org/wiki/Internet_in_North_Korea .

However they could have a hundred internet providers there, but if Kim wanted to collectively log off it wouldn't help much I suppose.

It's probably not the number of service providers that matters. It's the power of the Mad Despot.

My understanding is that only the government and military elite have access from North Korea.

They have an intranet in N.Korea. They have some websites (e.g wikipedia) in it as local copies from the internet