ATM is a cell relay protocol designed to optimize fiber optic networks. It breaks data into fixed-size cells for uniform transmission. ATM aims to maximize bandwidth, interface existing systems, be inexpensive, support telecom hierarchies, ensure reliable delivery, and minimize software functions. Connections between endpoints are established through virtual paths and circuits identified by header fields. Cells contain a 5-byte header and 48-byte payload. Connections can be permanent or switched. ATM defines layers for applications, cell processing, and physical transmission. It supports various quality of service levels through parameters like cell error and loss rates.