X.25 is a protocol suite defined by ITU-T for packet switched communications over WAN (Wide Area Network). It was originally designed for use in the 1970s and became very popular in 1980s. Presently, it is used for networks for ATMs and credit card verification. It allows multiple logical channels to use the same physical line. It also permits data exchange between terminals with different communication speeds.
X.25 has three protocol layers
Frame Relay is a packet switched communication service from LANs (Local Area Network) to backbone networks and WANs. It operates at two layers: physical layer and data link layer. It supports all standard physical layer protocols. It is mostly implemented at the data link layer.
Frame Relay uses virtual circuits to connect a single router to multiple remote sites. In most cases, permanent virtual circuits are used, i.e. a fixed network-assigned circuit is used through which the user sees a continuous uninterrupted line. However, switched virtual circuits may also be used.
Frame relay is a fast packet technology based on X.25. Data is transmitted by encapsulating them in multiple sized frames. The protocol does not attempt to correct errors and so it is faster. Error correction is handled by the endpoints, which are responsible for retransmission of dropped frames