Resource management in ATM networks is about managing critical network resources, which are managed in ATM with special control cells. For example, two critical resources are buffer space and remaining transmission bandwidth. Appropriate precautions can be taken by allocating the available network resources and dividing the traffic flow considering the service requirements. Virtual Path Connections( VPC) play a key role in resource management because when capacity is reserved on the VPC, the overhead of setting up individual virtual paths, Virtual Channel Connection( VCC), is reduced.
ATM's resource management applies two procedures. In the first procedure, the ATM switch enters the transmission rate in the ABR cell, Available Bit Rate (ABR), that it supports for the particular virtual connection. In the second procedure, the Congestion Indicator, the switch sets a flag and thus indicates an overload that has occurred.