A new packet data communication service known as Local Area Data Transport (LADT) has been recently introduced. Combining new loop electronics technology with packet switching, LADT provides customers with low‐cost data communications within local access and transport areas, as well as access to interexchange data communications networks. This paper describes the need for LADT, its goals, architecture, and services, and also serves as an introduction to the following paper on LADT system hardware and software.