Abstract: A method for communicating with a plurality of hosts connected to an X.25 network and for selectably using a character as a control character or a data character. Each character received from the X.25 network is inspected to determine if it is one of a set of reserved characters. If so, the character is encoded before being sent to its final destination. Data intended for the X.25 network is inspected for the presence of a predetermined control character. If the control character is present, the next character is inspected to determine whether it is a command character or an encoded data character. If this next character is an encoded data character, it is decoded and provided to the X.25 network. If this next character is a command character, then the command is executed. The method allows the use of any character as either a command character or data character. Data transfer between the DTE and DCE is assigned a PAD and a virtual channel number which corresponds to a particular host on the X.25 network.