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It is shown that peak cell rate policing can be combined with fast reservation protocols for achieving statistical multiplexing in asynchronous transfer mode (ATM) networks. A cell spacer-controller architecture which smooths out cell clusters according to the original period both at the user network interface (UNI) and at network node interface (NNI) is proposed. A performance evaluation of the spacer-controller is presented. The evaluation involves modeling the spacer-controller, dimensioning a virtual scheduling algorithm, and the impact on cell delay variation (CDV). It is shown that large CDVs may induce severe degradation in the accuracy of usage parameter control/network parameter control mechanisms.< >