This document discusses the theory of operations for packet switching networks. It describes traffic characteristics such as bursty traffic that is delay-insensitive and asymmetrical, making it well-suited for packet switching. The document then explains the basic operation of X.25 packet switching, where data is divided into packets and routed through a network of nodes before being reassembled. Each node acts as a data circuit-terminating equipment and routes packets based on its routing table while performing error checking and retransmission.