Apparatus and method for enabling bilateral transmission of digital data between a local area network and telephone company networks employing both analog and digital telephone lines. A modem modulates signals responsive to signals from a local area network representing an outgoing call to form digital telephone signals suitable for transmission by a telephone line and suitable for demodulation by receiving analog modems. A circuit switched time division multiplex bus transmits the digital telephone signals to the telephone line. The modem also demodulates incoming digital telephone signals to form digital network bus signals divided into packets. A packet bus transmits the digital network bus signals to a network interface which processes the signals and transmits them to the local area network.