Frame Relay takes data packets from a network layer protocol, such as IPv4 or IPv6, encapsulates them as the data portion of a Frame Relay frame, and then passes the frame to the physical layer for delivery on the wire. To understand how this works, it is helpful to understand how it relates to the lower levels of the OSI model.

Frame Relay encapsulates data for transport and moves it down to the physical layer for delivery, as shown in Figure 1.

First, Frame Relay accepts a packet from a network layer protocol, such as IPv4. It then wraps it with an address field that contains the DLCI and a checksum. Flag fields are added to indicate the beginning and end of the frame. The flag fields mark the start and end of the frame and are always the same. The flags are represented either as the hexadecimal number 7E or as the binary number 01111110. After the packet is encapsulated, Frame Relay passes the frame to the physical layer for transport.

The CPE router encapsulates each Layer 3 packet inside a Frame Relay header and trailer before sending it across the VC. The header and trailer are defined by the Link Access Procedure for Frame Relay (LAPF) Bearer Services specification, ITU Q.922-A. As shown in Figure 2, the Frame Relay header (address field) specifically contains the following:

The physical layer is typically EIA/TIA-232, 449 or 530, V.35, or X.21. The Frame Relay frame is a subset of the HDLC frame type; therefore, it is delimited with flag fields. The 1-byte flag uses the bit pattern 01111110. The FCS determines whether any errors in the Layer 2 address field occurred during transmission. The FCS is calculated prior to transmission by the sending node, and the result is inserted in the FCS field. At the distant end, a second FCS value is calculated and compared to the FCS in the frame. If the results are the same, the frame is processed. If there is a difference, the frame is discarded. Frame Relay does not notify the source when a frame is discarded. Error control is left to the upper layers of the OSI model.