Abstract: A method is described for network optimization based on a multirate, circuit-switched analysis. Network loss probabilities are determined as a solution of a set of fixed point equations and the sensitivity of network performance, as a function of offered load and loss probabilities, is determined as a solution to a set of linear equations. Because the numerical complexity of solving both the fixed point equations and the sensitivity equations is of an order which renders an exact solution computationally intractable, an asymptotic approximation is applied which yields a solution to the network loss probabilities and network sensitivities. A global optimization procedure is then applied using an iterative, steepest ascent optimization procedure to yield a set of virtual path routings and capacity allocations.