Virtual connection shaping with hierarchial arbitration

This invention relates to data communications networks utilizing ATM technology and more particularly to apparatus and methods for scheduling/shaping multi-service category cell traffic onto virtual-path connections while providing fair share arbitration between aggregating virtual channel connections. Apparatus and method for shaping ATM cell traffic emitted onto a virtual path connection in an ATM network are described. Component virtual channel connections are arbitrated at an aggregation point utilizing an arbitration technique. The technique provides both virtual path shaping and controllability of underlying virtual channel connections with an improved fairness performance amongst all the aggregating virtual channel connections.