Packet switching
Packet switching is a digital networking communications method that groups all transmitted data – regardless of content, type, or structure – into suitably sized blocks, called packets. First proposed for military uses in the early 1960s and implemented on small networks in 1968, this method of data transmission became the fundamental networking technology behind the Internet and most local area networks.

Packet switching features delivery of variable-bit-rate data streams (sequences of packets) over a shared network. When traversing network adapters, switches, routers and other network nodes, packets are buffered and queued, resulting in variable delay and throughput depending on the traffic load in the network.

Packet switching contrasts with another principal networking paradigm, circuit switching, a method which sets up a limited number of dedicated connections of constant bit rate and constant delay between nodes for exclusive use during the communication session. In case of traffic fees (as opposed to flat rate), for example in cellular communication services, circuit switching is characterized by a fee per time unit of connection time, even when no data is transferred, while packet switching is characterized by a fee per unit of information.

Two major packet switching modes exist; (1) connectionless packet switching, also known as datagram switching, and (2) connection-oriented packet switching, also known as virtual circuit switching. In the first case each packet includes complete addressing or routing information. The packets are routed individually, sometimes resulting in different paths and out-of-order delivery. In the second case a connection is defined and preallocated in each involved node during a connection phase before any packet is transferred. The packets include a connection identifier rather than address information, and are delivered in order. See below.

Packet mode communication may be utilized with or without intermediate forwarding nodes (packet switches or routers). In all packet mode communication, network resources are managed by statistical multiplexing or dynamic bandwidth allocation in which a communication channel is effectively divided into an arbitrary number of logical variable-bit-rate channels or data streams. Statistical multiplexing, packet switching and other store-and-forward buffering introduces varying latency and throughput in the transmission. Each logical stream consists of a sequence of packets, which normally are forwarded by the multiplexers and intermediate network nodes asynchronously using first-in, first-out buffering. Alternatively, the packets may be forwarded according to some scheduling discipline for fair queuing, traffic shaping or for differentiated or guaranteed quality of service, such as weighted fair queuing or leaky bucket. In case of a shared physical medium, the packets may be delivered according to some packet-mode multiple access scheme.


Connectionless and connection-oriented packet switching
The service actually provided to the user by networks using packet switching nodes can be either connectionless (based on datagram messages), or virtual circuit switching (also known as connection oriented). Some connectionless protocols are Ethernet, IP, and UDP; connection oriented packet-switching protocols include X.25, Frame relay, Multiprotocol Label Switching (MPLS), and TCP.

In connection-oriented networks, each packet is labeled with a connection ID rather than an address. Address information is only transferred to each node during a connection set-up phase, when the route to the destination is discovered and an entry is added to the switching table in each network node through which the connection passes. The signalling protocols used allow the application to specify its requirements and the network to specify what capacity etc. is available, and acceptable values for service parameters to be negotiated. Routing a packet is very simple, as it just requires the node to look up the ID in the table. The packet header can be small, as it only needs to contain the ID and any information (such as length, timestamp, or sequence number) which is different for different packets.

In connectionless networks, each packet is labeled with a destination address, source address, and port numbers; it may also be labeled with the sequence number of the packet. This precludes the need for a dedicated path to help the packet find its way to its destination, but means that much more information is needed in the packet header, which is therefore larger, and this information needs to be looked up in power-hungry content-addressable memory. Each packet is dispatched and may go via different routes; potentially, the system has to do as much work for every packet as the connection-oriented system has to do in connection set-up, but with less information as to the application's requirements. At the destination, the original message/data is reassembled in the correct order, based on the packet sequence number. Thus a virtual connection, also known as a virtual circuit or byte stream is provided to the end-user by a transport layer protocol, although intermediate network nodes only provides a connectionless network layer service.

Packet switching in networks
Packet switching is used to optimize the use of the channel capacity available in digital telecommunication networks such as computer networks, to minimize the transmission latency (the time it takes for data to pass across the network), and to increase robustness of communication.

The best-known use of packet switching is the Internet and most local area networks. The Internet is implemented by the Internet Protocol Suite using a variety of Link Layer technologies. For example, Ethernet and Frame Relay are common. Newer mobile phone technologies (e.g., GPRS, I-mode) also use packet switching.

X.25 is a notable use of packet switching in that, despite being based on packet switching methods, it provided virtual circuits to the user. These virtual circuits carry variable-length packets. In 1978, X.25 provided the first international and commercial packet switching network, the International Packet Switched Service (IPSS). Asynchronous Transfer Mode (ATM) also is a virtual circuit technology, which uses fixed-length cell relay connection oriented packet switching.

Datagram packet switching is also called connectionless networking because no connections are established. Technologies such as Multiprotocol Label Switching (MPLS) and the resource reservation protocol (RSVP) create virtual circuits on top of datagram networks. Virtual circuits are especially useful in building robust failover mechanisms and allocating bandwidth for delay-sensitive applications.

MPLS and its predecessors, as well as ATM, have been called "fast packet" technologies. MPLS, indeed, has been called "ATM without cells".Modern routers, however, do not require these technologies to be able to forward variable-length packets at multigigabit speeds across the network.

X.25 vs. Frame Relay packet switching
Both X.25 and Frame Relay provide connection-oriented packet switching, also known as virtual circuit switching. A major difference between X.25 and Frame Relay packet switching is that X.25 is a reliable protocol, based on node-to-node automatic repeat request, while Frame Relay is a non-reliable protocol, maximum packet length is 1000 bytes. Any retransmissions must be carried out by higher layer protocols. The X.25 protocol is a network layer protocol, and is part of the X.25 protocol suite, also known as the OSI protocol suite. It was widely used in switching networks during the 1980s and early 1990s, for example as an alternative to circuit mode terminal switching, and for automated teller machines. Frame relay is a further development of X.25. The simplicity of Frame Relay made it considerably faster and more cost effective than X.25 packet switching. Frame relay is a data link layer protocol, and does not provide logical addresses and routing. It is only used for "semi-permanent" connections, while X.25 connections also can be established for each communication session. Frame Relay was used to interconnect LANs or LAN segments, mainly in the 1990s by large companies that had a requirement to handle heavy telecommunications traffic across wide area networks. Despite the benefits of frame relay packet switching, many international companies are staying with the X.25 standard. In the United States, X.25 packet switching was used heavily in government and financial networks that use mainframe applications. Many companies did not intend to cross over to Frame Relay packet switching because it is more cost effective to use X.25 on slower networks. In certain parts of the world, particularly in Asia-Pacific and South America regions, X.25 was the only technology available.

 

Circuit switching
Circuit switching is a methodology of implementing a telecommunications network in which two network nodes establish a dedicated communications channel (circuit) through the network before the nodes may communicate. The circuit guarantees the full bandwidth of the channel and remains connected for the duration of the communication session. The circuit functions as if the nodes were physically connected as with an electrical circuit.

The defining example of a circuit-switched network is the early analog telephone network. When a call is made from one telephone to another, switches within the telephone exchanges create a continuous wire circuit between the two telephones, for as long as the call lasts.

Circuit switching contrasts with packet switching which divides the data to be transmitted into packets transmitted through the network independently. In packet switching, instead of being dedicated to one communication session at a time, network links are shared by packets from multiple competing communication sessions, resulting in the loss of the quality of service guarantees that are provided by circuit switching.

In circuit switching, the bit delay is constant during a connection, as opposed to packet switching, where packet queues may cause varying and potentially indefinitely long packet transfer delays. No circuit can be degraded by competing users because it is protected from use by other callers until the circuit is released and a new connection is set up. Even if no actual communication is taking place, the channel remains reserved and protected from competing users.

Virtual circuit switching is a packet switching technology that emulates circuit switching, in the sense that the connection is established before any packets are transferred, and packets are delivered in order.

While circuit switching is commonly used for connecting voice circuits, the concept of a dedicated path persisting between two communicating parties or nodes can be extended to signal content other than voice. Its advantage is that it provides for continuous transfer without the overhead associated with packets making maximal use of available bandwidth for that communication. Its disadvantage is that it can be relatively inefficient because unused capacity guaranteed to a connection cannot be used by other connections on the same network.

Call setup and control
For call setup and control (and other administrative purposes), it is possible to use a separate dedicated signalling channel from the end node to the network. ISDN is one such service that uses a separate signalling channel while plain old telephone service (POTS) does not.

The method of establishing the connection and monitoring its progress and termination through the network may also utilize a separate control channel as in the case of links between telephone exchanges which use CCS7 packet-switched signalling protocol to communicate the call setup and control information and use TDM to transport the actual circuit data.

Early telephone exchanges are a suitable example of circuit switching. The subscriber would ask the operator to connect to another subscriber, whether on the same exchange or via an inter-exchange link and another operator. In any case, the end result was a physical electrical connection between the two subscribers' telephones for the duration of the call. The copper wire used for the connection could not be used to carry other calls at the same time, even if the subscribers were in fact not talking and the line was silent.

Compared to datagram packet switching
Circuit switching contrasts with packet switching which divides the data to be transmitted into small units, called packets, transmitted through the network independently. Packet switching shares available network bandwidth between multiple communication sessions.

Multiplexing multiple telecommunications connections over the same physical conductor has been possible for a long time, but nonetheless each channel on the multiplexed link was either dedicated to one call at a time, or it was idle between calls.

In circuit switching, and virtual circuit switching, a route and bandwidth is reserved from source to destination. Circuit switching can be relatively inefficient because capacity is guaranteed on connections which are set up but are not in continuous use, but rather momentarily. However, the connection is immediately available while established.

Packet switching is the process of segmenting a message/data to be transmitted into several smaller packets. Each packet is labeled with its destination and a sequence number for ordering related packets, precluding the need for a dedicated path to help the packet find its way to its destination. Each packet is dispatched independently and each may be routed via a different path. At the destination, the original message is reassembled in the correct order, based on the packet number. Datagram packet switching networks do not require a circuit to be established and allow many pairs of nodes to communicate concurrently over the same channel.

Examples of circuit-switched networks

• Public switched telephone network (PSTN)
• ISDN B-channel
• Circuit Switched Data (CSD) and High-Speed Circuit-Switched Data (HSCSD) service in cellular systems such as GSM
• Datakit
• X.21 (Used in the German DATEX-L and Scandinavian DATEX circuit switched data network)
• Optical mesh network