The invention is directed to optimizing setup of a VCAT connections using (largest) CCAT containers so as to minimize the number of cross-connection commands needed to enable data transfer. A system and method are provided for enhancing VCAT networks to include faster service restoration rates and faster connection setup times. One embodiment includes expanding available VCAT timeslots to include available CCAT timeslots. A routing and signaling control module alerts a source network element, internal network elements and a destination network element that the data transmission includes VCAT payloads rather than the expected CCAT payloads. By issuing this alert, the routing and signaling control module instructs an end-point monitoring function to overlook any mismatch between the expected CCAT rate and the received VCAT traffic. Otherwise, if the mismatch is not overlooked, then the end-point monitoring function will squelch the received VCAT traffic, which terminates the data communication.