Abstract--We consider the stability and performance of a model for networks supporting services that adapt their transmission to the available bandwidth. Not unlike real networks, in our model, connection arrivals are stochastic, each has a random amount of data to send, and the number of ongoing connections in the system changes over time. Consequently, the bandwidth allocated to, or throughput achieved by, a given connection may change during its lifetime as feedback control mechanisms react to network loads. Ideally, if there were a fixed number of ongoing connections, such feedback mechanisms would reach an equilibrium bandwidth allocation typically characterized in terms of its "fairness" to users, e.g., max-min or proportionally fair. In this paper we prove the stability of such networks when the offered load on each link does not exceed its capacity. We use simulation to investigate performance, in terms of average connection delays, for various fairness criteria. Finally, we pose an architectural problem in TCP/IPs decoupling of the transport and network layer from the point of view of guaranteeing connection-level stability, which we claim may explain congestion phenomena on the Internet.Index Terms--ABR service, bandwidth allocation, Lyapunov functions, performance analysis, proportional fairness, rate control, stability, TCP/IP, weighted max-min fairness.