In ATM networks, all information is formatted into fixed-length cells consisting of 48 bytes (8 bits per byte) of payload and 5 bytes of cell header (see Figure 2). The fixed cell size ensures that time-critical information such as voice or video is not adversely affected by long data frames or packets. The header is organized for efficient switching in high-speed hardware implementations and carries payload-type information, virtual-circuit identifiers, and header error check.

Figure 2. Fixed-Length Cells
ATM is connection oriented. Organizing different streams of traffic in separate calls allows the user to specify the resources required and allows the network to allocate resources based on these needs. Multiplexing multiple streams of traffic on each physical facility (between the end user and the network or between network switches)combined with the ability to send the streams to many different destinationsenables cost savings through a reduction in the number of interfaces and facilities required to construct a network.
ATM standards defined two types of ATM connections: virtual path connections (VPCs), which contain virtual channel connections (VCCs). A virtual channel connection (or virtual circuit) is the basic unit, which carries a single stream of cells, in order, from user to user. A collection of virtual circuits can be bundled together into a virtual path connection. A virtual path connection can be created from end-to-end across an ATM network. In this case, the ATM network does not route cells belonging to a particular virtual circuit. All cells belonging to a particular virtual path are routed the same way through the ATM network, thus resulting in faster recovery in case of major failures.
An ATM network also uses virtual paths internally for the purpose of bundling virtual circuits together between switches. Two ATM switches may have many different virtual channel connections between them, belonging to different users. These can be bundled by the two ATM switches into a virtual path connection. This can serve the purpose of a virtual trunk between the two switches. This virtual trunk can then be handled as a single entity by, perhaps, multiple intermediate virtual path cross connects between the two virtual circuit switches.
Virtual circuits can be statically configured as permanent virtual circuits (PVCs) or dynamically controlled via signaling as switched virtual circuits (SVCs). They can also be point-to-point or point-to-multipoint, thus providing a rich set of service capabilities. SVCs are the preferred mode of operation because they can be dynamically established, thus minimizing reconfiguration complexity.


