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A permanent virtual circuit (PVC) is a connection that is permanently established between two or more nodes in frame relay and asynchronous transfer mode (ATM) based networks. It enables the creation of a logical connection on top of a physical connection between nodes that communicate frequently or continuously.
A PVC is designed to eliminate the need to set up a call connection on frame relay, ATM or X.25 networks. Typically, the physical connections of a frame relay or supported network into various virtual circuits (VC) allow a physical connection to support multiple VCs simultaneously. Each connection is permanent and transfers data by utilizing the underlying bandwidth capacity and infrastructure. For example, a bank’s headquarters often sets up a PVC between branch offices for continuous data exchange and transfer.