Circuit Switching vs. Packet Switching

Okan Özşahin
6 min readSep 25, 2023

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In the world of telecommunications and networking, two fundamental paradigms have long played a pivotal role in how data is transmitted: packet switching and circuit switching. These two methods represent distinct approaches to managing data flows, each with its own set of advantages and applications. In this article, we’ll dissect the core principles of packet switching and circuit switching, highlighting their key differences and the scenarios in which they shine.

Circuit Switching: The Legacy of Dedicated Connections

Circuit Switching is a traditional method of establishing and maintaining a dedicated communication path or circuit between two parties for the duration of their conversation or data transfer. In circuit-switched networks, the resources (such as bandwidth and the communication path itself) are reserved exclusively for the duration of the call or session. Circuit switching is commonly associated with analog voice telephone networks (PSTN — Public Switched Telephone Network).

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Frequency Division Multiplexing (FDM) is a technique used in telecommunications and signal processing to combine multiple analog or digital signals onto a single transmission medium, such as a communication channel or a cable. FDM works by allocating a specific range of frequencies, or frequency bands, to each signal source. Each signal is modulated onto its respective carrier frequency within its allocated band. When all the signals are combined and transmitted together, they occupy different frequency bands within the overall spectrum. At the receiving end, these signals are demodulated to extract the original data.

Time Division Multiplexing (TDM) is a widely used method in telecommunications and networking for transmitting multiple signals or data streams over a common communication channel. TDM allocates specific time slots to each signal source, allowing them to share the channel in a time-sequential manner. It is particularly effective for digital communication and is used in various applications, including voice and data transmission.

Here are the key components and principles of Circuit Switching:

  1. Circuit Establishment: When a call is initiated, a dedicated communication path, or circuit, is established between the calling and receiving parties. This circuit remains connected for the entire duration of the call, even if no one is speaking or transmitting data.
  2. Resource Reservation: Circuit switching reserves the necessary resources (such as bandwidth) for the entire duration of the call, ensuring that the communication quality remains constant and predictable.
  3. Continuous Connection: Once the circuit is set up, the connection between the two parties is continuous, and they can communicate in real-time without delay. This feature is well-suited for voice calls and other real-time applications.
  4. Exclusive Use: The dedicated circuit is exclusively used by the two parties involved in the call. No other communication can use the same circuit until the call is terminated.
  5. Call Termination: When the call is complete, the circuit is released, and the reserved resources are made available for other calls or uses.

Advantages of Circuit Switching:

  1. Predictable Quality: Circuit switching provides constant, predictable quality of service, which is vital for real-time applications like voice calls. This consistency ensures low-latency, high-quality communication.
  2. Simple and Deterministic: Circuit switching is straightforward to implement and suits applications where a continuous, dedicated connection is essential.

Drawbacks of Circuit Switching:

  1. Inefficient Resource Usage: A significant drawback of circuit switching is its inefficiency in resource utilization. The dedicated circuit remains reserved even when no data is being transmitted, leading to underutilized network resources.
  2. Limited Flexibility: Circuit-switched networks are less adaptable to changes in traffic patterns and are less resilient in the face of network failures.

Packet Switching: The Backbone of the Internet

Packet switching is a fundamental data transmission technique used in modern computer networks and the internet. It allows for the efficient and flexible transmission of data by breaking it into smaller, discrete packets, which are then sent individually across the network and reassembled at the destination. This approach contrasts with circuit switching, which establishes a dedicated communication path for the duration of a connection.

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Here are the key components and principles of packet switching:

  1. Data Packet: In packet switching, data is divided into small, fixed-size packets. Each packet typically contains a portion of the original data, as well as a header that includes essential information like source and destination addresses, sequence numbers, and error-checking codes.
  2. Routing: The network’s routers and switches play a crucial role in packet switching. They examine the header information of incoming packets and determine the most appropriate path for forwarding them to their destination based on the routing protocols and tables in use.
  3. Store-and-Forward: Routers and switches use a store-and-forward mechanism, meaning they receive an entire packet before making a forwarding decision. This allows them to perform error checking, discard corrupted packets, and queue packets for transmission as needed.
  4. Shared Network Resources: In a packet-switched network, multiple data streams share the same network resources, including bandwidth and transmission links. This sharing of resources enables more efficient use of the network compared to circuit switching.
  5. Dynamic Routing: Packet-switched networks often employ dynamic routing algorithms that adapt to changing network conditions. This flexibility allows for efficient data transmission and load balancing across the network.
  6. Packet Loss and Retransmission: Because packets can take different routes and encounter various network conditions, they may arrive at their destination out of order or be lost in transit. Protocols at higher layers of the OSI model, such as the Transmission Control Protocol (TCP), handle packet loss and retransmission to ensure reliable data delivery.

Advantages of Packet Switching:

  1. Efficiency: Packet switching optimizes network resources, allowing for more efficient use of available bandwidth. It adapts to varying data rates and traffic patterns dynamically.
  2. Scalability: Packet-switched networks can easily accommodate new devices and users without requiring significant changes to the network infrastructure.
  3. Resilience: Packet switching is inherently resilient. If a network link or router fails, packets can be rerouted through alternative paths, ensuring data continuity.
  4. Support for Diverse Data Types: Packet switching is well-suited for handling a wide range of data types, including text, audio, video, and real-time applications, making it the foundation of the internet and modern communication systems.

Drawbacks of Packet Switching:

  1. Variable Latency: Since packets can take different routes and experience varying levels of congestion, the latency (delay) in packet-switched networks can be inconsistent. This can be problematic for real-time applications without proper Quality of Service (QoS) mechanisms.
  2. Out-of-Order Delivery: Packets can arrive at their destination out of order due to the diverse paths they take. This requires additional processing and buffering to reorder the data correctly.

Applications and the Modern Landscape

The choice between packet switching and circuit switching hinges on specific communication needs:

  • Circuit switching still finds its place in dedicated, real-time services like traditional telephone networks. However, even in this domain, hybrid approaches like Voice over IP (VoIP) are gaining ground, combining elements of both paradigms to strike a balance between efficiency and quality.
  • Packet switching is the dominant paradigm in modern data networks, powering the internet and enabling the efficient transfer of diverse data types. It excels in scenarios where resource optimization and flexibility are paramount.

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Okan Özşahin

Backend Developer at hop | Civil Engineer | MS Computer Engineering