Abstract: An ATM inverse multiplexing cell-based system for reducing error-multiplication due to error events in the transmitted cell stream, which includes a first IMA assembly having an input coupled to an incoming cell stream from a first ATM layer device, a second IMA assembly having an output coupled to a second ATM layer device, a plurality of links coupling the first IMA assembly to the second IMA assembly. The first IMA assembly includes a multiplexer for multiplexing the incoming cell stream onto the plurality of links and for inserting onto the links framing cells in the form of "st" cells in place of idle cells and "S" cells to mark divisions in each channel corresponding to a given number of cells or a given time interval between successive "S" cells. An encoder encodes and inserts cell location information of both control cells and payload cells. The second IMA assembly includes a plurality of link buffers for receiving cells transmitted along respective ones of links.