Abstract: Method and system are provided for processing B-ISDN transfer protocols in a telecommunication system utilizing a generic ATM/AAL interface having a programmable electronic circuit. At the ATM Adaptation Layer (AAL), segmentation and reassembly, and convergence sublayer protocols have been developed to support the different service types to be handled. The interface facilitates a cost effective yet relatively simple broadband ATM/AAL terminal adapter that performs ATM and ATM Adaptation Layer processing in a very flexible manner. The terminal adapter handles several different transfer protocols (AAL types 1, 3, 4 and 5) using a single architecture on a per protocol data unit (PDU) basis and may be implemented using field programmable gate arrays and off-the-shelf components. The method and system is flexible enough to support changes in existing, new and future AAL/ATM standards.