A communication unit for concurrently processing cells in an asynchronous transfer mode (ATM) network. Packets are segmented into a plurality of cells concurrently for a plurality of channels for transmission over the (ATM) network. Cells received from the ATM network are reassembled concurrently for the plurality of channels. Pipelined processing units are employed for segmentation and for reassembly each having logic control, control memory, and data memory. The segmentation unit control memory stores two-dimensional queues with first dimension rate queues for queueing descriptors for cells of different channels having cells to be transmitted and with second dimension channel queues for each channel having a cell descriptor in the rate queue.