Market reputation

Frame relay aimed to make more efficient use of existing physical resources, which allow for the underprovisioning of data services by telecommunications companies (telcos) to their customers, as clients were unlikely to be utilizing a data service 100 percent of the time. In more recent years, frame relay has acquired a bad reputation in some markets because of excessive bandwidth overbooking by these telcos.

Telcos often sell frame relay to businesses looking for a cheaper alternative to dedicated lines; its use in different geographic areas depended greatly on governmental and telecommunication companies' policies. Some of the early companies to make frame relay products included StrataCom (later acquired by Cisco Systems) and Cascade Communications (later acquired by Ascend Communications and then by Lucent Technologies).

As of June 2007 AT&T was the largest frame relay service provider in the USA, with local networks in 22 states, plus national and international networks