Packet switching is a digital networking communications method that groups all transmitted data into suitably sized blocks, called packets, which are transmitted via a medium that may be shared by multiple simultaneous communication sessions. Packet switching increases network efficiency, robustness and enables technological convergence of many applications operating on the same network.

Statistical multiplexing is a type of communication link sharing, very similar to dynamic bandwidth allocation (DBA). In statistical multiplexing, a communication channel is divided into an arbitrary number of variable bit-rate digital channels or data streams. The link sharing is adapted to the instantaneous traffic demands of the data streams that are transferred over each channel. This is an alternative to creating a fixed sharing of a link, such as in general time division multiplexing (TDM) and frequency division multiplexing (FDM). When performed correctly, statistical multiplexing can provide a link utilization improvement, called the statistical multiplexing gain.

Time-division multiplexing (TDM) is a method of transmitting and receiving independent signals over a common signal path by means of synchronized switches at each end of the transmission line so that each signal appears on the line only a fraction of time in an alternating pattern. This form of signal multiplexing was developed in telecommunications for telegraphy systems in the late 19th century, but found its most common application in digital telephony in the second half of the 20th century.