Abstract: A method and system for processing one or more TDMs for communication over IP networks, such as the Internet, includes encapsulating ATM cells (packets) using AAL1 cells within UDP over IP frames to provide synchronous bit streams into fixed size cells. This allows for an IP header to be added to the packets, with such packets forwarded to its destination host across the IP network. The destination regenerates the clock, decrypts/strips the IP header and delivers a synchronous bit stream. Furthermore, an adaptive clock is provided for clock transfer across the network. The adaptive clock regenerates the far end T1/E1 receive clock out of the incoming arrival frame rate. Frames arriving from the IP network are stored in a buffer and taken out for TDM stream assembly.