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The application of ATM to LAN on a commercial basis is rapidly gaining momentum in the ATM forum and elsewhere. In the future, as public ATM networks become widespread, we are likely to see the appearance of ATM data terminals for direct connection to an ATM. When that happens, we can expect demands for the realization of virtual LANs, with no distance limitations. The possibilities of ATM data terminals go beyond the desktop workstations and PC. Assuming portable data terminals another demand will be the configurastion of virtual LANs to which connection can be made from many different places. There have been very few studies on methods of realizing a virtual LAN using the public network. The authors studied the implementation of portability functions and proposes specific algorithms for this.