Asynchronous Transfer Mode (ATM) marks the beginning of a new era of LAN(Local Area Network)/WAN(Wide Area Network) integration and performance. It promises manageable and secure bandwidth on demand and is the proposed telecommunications standard for Broadband ISDN. Two way data, voice, and video will be transmitted on a common circuit using low-cost networking and low-cost technology. Any kind of information would be transferred and switched in real time or non-real time at fixed or variable speed, depending on the characteristics of the steady or bursty data sources. In addition, there are many future benefits to ATM networking. A few of them include: accessing digital medical images by several physicians simultaneously, extending the university classroom beyond its physical boundaries with distance-learning applications as if one was actually present, videoconferencing, and video on demand. The most important benefit seems to be that it will save the user money. ATM will provide direct bandwidth savings by securing only the most efficient bandwidth needed by an application.