A TDM PCM communication system includes a plurality of user terminals, a switching network and a CPU for controlling the establishment of transmission paths between the user terminals and the switching network for the transfer of information between predetermined ones of the user terminals. An incoming path carries information bits from the user terminals to the switching network and an outgoing path carries information bits from the switching network to the user terminals. The switching network includes means for transferring single information bits each residing in a time slot period from the incoming path to the outgoing path. The transferring means includes an exchange means for effecting a bilateral exchange of information bits in fixed pairs of time slot periods, whereby paths for information bit transmission are periodically provided between ones of the user terminals, as determined by the CPU. PCM words are thereby exchanged bit by bit between user terminals enabled in fixed pairs of time slot periods.