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Definition: Asynchronous Transfer Mode (ATM) is a cell relay, packet switching network and data link layer protocol which encodes data traffic into small (53 octets; 48 octets of data and 5 octets of header information) fixed-sized cells.
ATM provides data link layer services that run over Layer 1 links.
This differs from other technologies based on packet-switched networks (such as the Internet Protocol or Ethernet), in which variable sized packets (known as frames when referencing Layer 2) are used.
ATM is a connection-oriented technology, in which a logical connection is established between the two endpoints before the actual data exchange begins.
The standards for ATM were first developed in the mid 1980s.
The goal was to design a single networking strategy that could transport real-time video and audio as well as image files, text and email.
Two groups, the International Telecommunications Union and the ATM Forum were involved in the creation of the standards.
ATM has been used primarily with telephone and IP networks.
Source: Wikipedia (http://en.wikipedia.org/wiki/Asynchronous_transfer_mode)