We describe issues in designing rate allocation schemes for virtual source / virtual destination (VS/VD) switches. Improper design of VS/VD such schemes can result in poor performance and large steady state queues. We propose a rate allocation scheme for VS/VD switches. This scheme is based on the ERICA+ algorithm, and uses per-VC queuing and per-VC control. We analyze the performance of this scheme, and conclude that VS/VD can help in limiting buffer requirements of switches, based on the length of their VS/VD control loops. VS/VD is especially useful in isolating terrestrial networks from the effects of long delay satellite networks by limiting the buffer requirements of the terrestrial switches. We present simulation results to substantiate our conclusions.

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