Frame relay is a packet-switched WAN technology that provides cost savings over leased lines by allowing for higher circuit utilization and network availability. It connects user devices like PCs and network hosts to packet switches that make up the frame relay network. While it offers benefits like protocol independence and performance, frame relay is not suitable for real-time applications due to varying delays, cannot support data rates higher than 44.376 Mbps, and may be more expensive than internet services.