ATM stands for Asynchronous Transfer Mode, which is a connection-oriented switching technique that uses time division multiplexing to transmit voice, video, and data communications in fixed-size cells. ATM networks encode data into 53-byte cells with a 5-byte header and 48-byte payload to allow for time division multiplexing over physical mediums. The ATM reference model has physical, ATM, and adaptation layers to convert data into cells, route cells through the network, and provide interfaces between ATM and other networks.