This section describes virtual circuit setup by the network configuration system. There are two approaches at this level, depending on whether switched virtual circuits (SVCs) or Permanent Virtual Circuits (PVCs) are available. RFC1577  is followed on both the fixed and wireless networks. A Logical IP Subnet (LIS) can be comprised of fixed and wireless portions of the network.
When PVCs are used, the network configuration system establishes a fully meshed VC connections as follows. The EN on receipt of a USER_POS packet (Table 6) from a new physically connected RN sends pairs of VC_SETUP packets (Table 8) to the new RN and each one of the existing RNs. Each VC_SETUP packet contains a designated IP address of the new RN and a VCI number identifying the VC to be setup. The RN on receipt of each pair of VC_SETUP packets, extracts the IP address and VCI number from each VC_SETUP packet and uses it to setup the VC. Since the VC_SETUP packets are sent in pairs to the new RN and to each of the existing RNs for each RN in the network, VCs will be setup between the new RN and each of the existing RNs resulting in a fully meshed VC configuration as desired.
If switched virtual circuits are used, only the signaling VCs as specified in the standards will be established in a manner similar to that described above.