In Asynchronous Transfer Mode (ATM) communications networks, certain congestion control features, such as Partial Packet Discard (PPD) and Early Packet Discard (EPD), operate on ATM cells that have been segmented from ATM Adaptation Layer #5 (AAL5) frames (packets). AAL5 frames are automatically detected by observing transitions of an indicator in the ATM cell header unique to AAL5 traffic. Automatic detection of AAL5 traffic allows enablement of packet-aware cell discarding techniques such as PPD and EPD on a Virtual Channel Connection (VCC) basis, whether in a switch for a VCC or for a Virtual Path Connection (VPC) to which the VCC belongs.