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The growing demand of computer usage requires efficient ways of managing network traffic in order to avoid or at least limit the level of congestion in cases where increases in bandwidth are not desirable or possible. In this paper we developed and analyzed a generic Integrated Dynamic Congestion Control (IDCC) scheme for controlling traffic using information on the status of each queue in the network. The IDCC scheme is designed using nonlinear control theory based on a nonlinear model of the network that is generated using fluid flow considerations. The methodology used is general and independent of technology, as for example TCP/IP or ATM. We assume a differentiated-services network framework and formulate our control strategy in the same spirit as IP DiffServ for three types of services: Premium Service, Ordinary Service, and Best Effort Service. The three differentiated classes of traffic operate at each output port of a router/switch. An IDCC scheme is designed for each output port, and a simple to implement nonlinear controller, with proven performance, is designed and analyzed. Using analysis performance bounds are derived for provable controlled network behavior, as dictated by reference values of the desired or acceptable length of the associated queues. By tightly controlling each output port, the overall network performance is also expected to be tightly controlled. The IDCC methodology has been applied to an ATM network. We use OPNET simulations to demonstrate that the proposed control methodology achieves the desired behavior of the network, and possesses important attributes, as e.g., stable and robust behavior, high utilization with bounded delay and loss, together with good steady-state and transient behavior.