Abstract-Carrying IP traffic over connection-oriented networks requires the use of bandwidth allocation schemes at gateways or network interfaces. A new virtual queue occupancy, which is more accurate than the classical queue status parameter, is being proposed for periodic bandwidth allocation. Based on this virtual queue occupancy, an enhanced approach for lossless services, referred to as LAVQ, is simulated and evaluated in an IP/SONET environment. Simulations show that LAVQ outperforms its counterpart LAQ in terms of bandwidth utilization, without compromising the performance of queue occupancy.