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            Asynchronous transfer mode (ATM) is a 
            high-performance, cell-oriented switching and statistical 
            multiplexing technology that utilizes fixed-length packets to carry 
            different types of traffic. ATM is a technology that enables 
            carriers to capitalize on a number of revenue opportunities through 
            multiple ATM classes of services; high-speed local-area network 
            (LAN) interconnection; voice, video, and future multimedia 
            applications in business markets in the short term; and in community 
            and residential markets in the longer term.  
             
            Changes in the structure of the telecommunications industry and 
            market conditions have brought new opportunities and challenges for 
            network operators and public service providers. Networks that have 
            been primarily focused on providing better voice services are 
            evolving to meet new multimedia communications challenges and 
            competitive pressures. Services based on asynchronous transfer mode 
            (ATM) and synchronous digital hierarchy (SDH)/synchronous optical 
            network (SONET) or optical transport network (OTN) architectures 
            provide the flexible infrastructure essential for success in this 
            evolving market. Broadband network backbones exploit widely deployed 
            fiber-optic links to build highly available digital channels, based 
            on the SDH TDM or WDM transmission technology. 
             
            An early view was that the ATM networks would evolve in an orderly 
            way from the core out. In this idealistic environment high-speed ATM 
            core networks would be installed to accommodate each and every type 
            of application installed in the access networks. However, it rapidly 
            became clear that business pressures do not permit this orderly form 
            of evolution. Business applications require urgent implementation, 
            particularly in key new areas where “first to market” can make a 
            substantial difference to profitability and business success. The 
            cost-effective short-term solutions are being implemented, just to 
            first to market. 
             
            The need is now emerging for a more orderly approach to accommodate 
            the growing market need for interconnectivity between Internet 
            services, bulk data, imaging, transaction, video, and frame relay 
            applications. Also, many applications, particularly multimedia 
            applications, require sharing of processing, storage, and database 
            access functions across interconnected components in both public and 
            private networks.  
             
            ATM as the technology of public and private networks is now a 
            reality, with service providers around the world introducing and 
            rolling out ATM and ATM–based services. The ability to exploit the 
            benefits of ATM technology within the public network successfully 
            will provide strategic competitive advantage to carriers and 
            enterprises alike.  
             
            In addition to revenue opportunities, ATM reduces infrastructure 
            costs through efficient bandwidth management, operational 
            simplicity, and the consolidation of overlay networks. Carriers can 
            no longer afford to go through the financial burden and time 
            required to deploy a separate network for each new service 
            requirement (e.g., dedicating a network for a single service such as 
            transparent LAN or frame relay). ATM technology will allow core 
            network stability while allowing service interfaces and other 
            equipment to evolve rapidly. 
             
            The rest of this chapter is structured as follows. First ATM 
            concept, protocol stack, ATM networking are briefly reviewed. Later, 
            ATM applications as a common integrated multi-service platform and 
            its current role within the network and service providers are 
            discussed. Subsequently, the evolution towards ATM-based 
            transmission technology is reviewed and advantages or disadvantages 
            of an ATM based transport infrastructure are stated. Finally, after 
            a brief comparison between standard SDH TDM overlay network and the 
            ATM-based or IP-based alternative, the conclusions and future 
            directions in the industry, network operators and service providers 
            are pointed out. 
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