Definitions: Packet-switched networks move data in separate,

small blocks -- packets -- based on the destination address in

each packet. When received, packets are reassembled in the
proper sequence to make up the message. Circuit-switched
networks require dedicated point-to-point connections during
calls.
Circuit-switched networks and packet-switched networks have traditionally occupied
different spaces within corporations. Circuit-switched networks were used for phone
calls and packet-switched networks handled data. But because of the reach of phone
lines and the efficiency and low cost of data networks, the two technologies have shared
chores for years.
Designed in 1878, circuit-switched networks reserve a dedicated channel for the entire
communication.
The primary hardware for a circuit-switched network is the private branch exchange
(PBX) system. Computer servers power packet-switched networks.
In modern circuit-switched networks, electronic signals pass through several switches
before a connection is established. And during a call, no other network traffic can use
those switches.
In packet-based networks, however, the message gets broken into small data packets
that seek out the most efficient route as circuits become available. Each packet may go
a different route; its header address tells it where to go and describes the sequence for
reassembly at the destination computer, says Joel Maloff, president of consultancy
Maloff Group International Inc. in Ann Arbor, Mich.
Technologies Converge
Formerly, packet-switched digital networks would connect to circuit-switched ports to
gain access to computer networks in different locations. But nowadays, remote dial-up
access to corporate computers is usually over the Internet, using global Internet service
providers (ISP), says Ron Westfall, an analyst at Current Analysis Inc. in Sterling, Va.
"For a large organization, the payoff is self-evident," says Westfall. "If you can go from
paying for one long-distance call from a hotel in Singapore to (paying for) one local call
to an ISP in Singapore and another call to the ISP near your headquarters in New York,
you're only paying for two local-access charges."

With the expanded use of the Internet for voice and video, analysts predict a gradual
shift away from circuit-switched networks.
"A circuit-switched network is good for certain kinds of applications with limited points to
go to. If you're doing voice applications solely, it's great," says Maloff. "But if you have
multiple locations to get to and large amounts of data to transmit, it's better to break it
down into packets."
Voice-over-IP vendors point out that IP-based calls are cheaper than circuit-based ones,
but analysts say it will be a long time before corporations abandon proven PBX systems
and use packet-based networks for data, voice and video. The biggest impediment to
voice-over-IP is poor voice quality and call latency, says analyst Michael Arellano at
Degas Communications Group Inc. in Westport, Conn. "With packet-switched networks,
what happens if the packets containing voice signals arrive at different times or in a
different order? (A congested network) can also drop packets."
"Currently, there's a PBX side of the house and an IT side of the house," Westfall says.
"But if you survey IT managers, they're not hopping up and down to put voice on data
networks. They have enough challenges maintaining the data network."
"PBX is a proven technology. Although it's proprietary, it's efficient at delivering voice
traffic and offering features like voice mail," Westfall says.
"Packet switching is more efficient," Maloff agrees. "But we'll have hybrid systems for the
next several years."

Virtual circuit switching

Virtual circuit switching is a packet switching methodology whereby a path is established between the
source and the final destination through which all the packets will be routed during a call. This path is
called a virtual circuit because to the user, the connection appears to be a dedicated physical circuit.
However, other communications may also be sharing the parts of the same path.
Before the data transfer begins, the source and destination identify a suitable path for the virtual
circuit. All intermediate nodes between the two points put an entry of the routing in their routing
table for the call. Additional parameters, such as the maximum packet size, are also exchanged
between the source and the destination during call setup. The virtual circuit is cleared after the data
transfer is completed.

Virtual circuit packet switching is connection orientated. This is in contrast to datagram switching,
which is a connection less packet switching methodology. Advantages of virtual circuit switching are:

Packets are delivered in order,

since they all take the same route;

The overhead in the packets is smaller,

since there is no need for each packet to contain the full address;

The connection is more reliable,

network resources are allocated at call setup so that even during times of congestion, provided
that a call has been setup, the subsequent packets should get through;

Billing is easier,
since billing records need only be generated per call and not per packet.

Disadvantages of a virtual circuit switched network are:

The switching equipment needs to be more powerful,

since each switch needs to store details of all the calls that are passing through it and to
allocate capacity for any traffic that each call could generate;

Resilience to the loss of a trunk is more difficult,

since if there is a failure all the calls must be dynamically reestablished over a different route.

Examples of virtual circuit switching are X.25 and Frame Relay.

Circuit Switching
In circuit switching network dedicated channel has to be established before the
call is made between users. The channel is reserved between the users till the
connection is active. For half duplex communication, one channel is allocated
and for full duplex communication, two channels are allocated. It is mainly used
for voice communication requiring real time services without any much delay.

As shown in the figure 1, if user-A wants to use the network; it need to first ask
for the request to obtain the one and then user-A can communicate with user-C.
During the connection phase if user-B tries to call/communicate with user-D or
any other user it will get busy signal from the network.

Packet Switching
In packet switching network unlike CS network, it is not required to establish the
connection initially. The connection/channel is available to use by many users.
But when capacity or number of users increases then it will lead to congestion in
the network. Packet switched networks are mainly used for data and voice
applications requiring non-real time scenarios.

As shown in the figure 2, if user-A wants to send data/information to user-C and if

user-B wants to send data to user-D, it is simultaneously possible. Here
information is padded with header which contains addresses of source and
destination. This header is sniffed by intermediate switching nodes to determine
their route and destination.

In packet switching, station breaks long message into packets. Packets are sent
one at a time to the network. Packets are handled in two ways, viz. datagram and
virtual circuit.
In datagram, each packet is treated independently. Packets can take up any
practical route. Packets may arrive out of order and may go missing.
In virtual circuit, preplanned route is established before any packets are
transmitted. The handshake is established using call request and call accept
messages. Here each packet contains virtual circuit identifier(VCI) instead of the
destination address. In this type, routing decisions for each packet are not
needed.

Comparison between CS vs. PS networks

As shown above in Packet switched (PS) networks quality of service (QoS) is not
guaranteed while in circuit switched (CS) networks quality is guaranteed.
PS is used for time insensitive applications such as
internet/email/SMS/MMS/VOIP etc.
In CS even if user is not talking the channel cannot be used by any other users,
this will waste the resource capacity at those intervals.
The example of circuit switched network is PSTN and example of packet
switched network is GPRS/EDGE.
Following table summarizes difference between circuit switching and packet
switching of type datagram and virtual circuit.

ircuit Switching

Packet Switching(Datagram
type)

Packet Switching(Virtual Circuit type)

Dedicated path

No Dedicated path

No Dedicated path

Path is established for entire

conversation

Route is established for each

packet

Route is established for entire conversation

Call setup delay

packet transmission delay

call setup delay as well as packet

transmission delay

Overload may block call

setup

Overload may block call setup and

Overload increases packet delay increases packet delay

Fixed bandwidth

Dynamic bandwidth

Dynamic bandwidth

No overhead bits after call

setup

overhead bits in each packet

overhead bits in each packet

Virtual circuit switching gives the clients the impression that they have a
dedicated cable, while in fact they are allocated time-slots (or frequency bands,
or some other shared slice) in all the cables that make up the connection. This
better matches the current economic reality that a cable is very expensive, but
has a bandwidth that far exceeds the needs of most clients, hence sharing is
economical.
The difference between a virtual switched circuit and plain packet switching is
that for a virtual circuit all the steps that make up the connection are
determined when the connection is established, and the buffers and bandwidth
at each step is claimed and thus guaranteed. For (plain) packet switching there
is no such circuit creation: each packet finds its own way through the network,
and has to hope that sufficient buffers and bandwidth is available at each step.