The traffic terminal equipment (TTE) for the INTELSAT TDMA System handles the actual traffic of the network and operates under control of the reference terminal equipment (RTE) installed at the reference station. The required function and performance for the TTE are specified in detail by the INTELSAT TDMA/DSI specification, but there may be many approaches to actual equipment design. NEC's TTE has been designed based on NEC's extensive experience and field‐proven circuit techniques. In addition, the TTE design has been affected by the fact that NEC has been engaged in the development and production of the RTE for INTELSAT. NEC's TTEs have been delivered to customers since the summer in 1984, with the first test with the RTE through the satellite having been successfully performed at COMSAT's Etam station at the end of 1984. This paper describes the capabilities of the traffic terminal equipment, developed and manufactured by NEC Corporation, together with the design approach used in its fabrication.