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System performance and reliability are jointly assessed for highly reliable telecommunication or computer networks. The underlying model assumes that at most a small number of components can be "down" at a time, and that the average repair/replacement time of a failed component is small when compared to the average uptimes of network components. At steady state the system is assumed to follow a regenerative stochastic process. This methodology is used to evaluate highly distributed voice/data integrated networks. The performance measure selected for this application is the traffic loss rate.