We study networks based on virtual paths, i.e. rearrangable end-to-end transport network. Virtual paths networks are readily implemented in any network using the synchronous digital hierarchy and/or the asynchronous transfer mode. The concept and its advantages, for example cost savings, network operation simplification and enhanced network management capabilities, are discussed. Algorithms for virtual path designs are reviewed and a new algorithm is presented which is found to compare favourably with the algorithm providing the most similar features. Applying it to a real network, we turn to operational aspects of reconfigurable networks such as methods and parameters for traffic estimation and network updating. The validity of the results is demonstrated by means of simulations of a number of networks subject to variable traffics.