Abstract. Performance of real-time applications on network communication channels are strongly related to losses and temporal delays. Several studies showed that these network features may be correlated and exhibit a certain degree of memory such as bursty losses and delays. The memory and the statistical dependence between losses and temporal delays suggest that the channel may be well modelled by a Hidden Markov Model (HMM) with appropriate hidden variables that capture the current state of the network. In this paper we discuss on the effectiveness of using an HMM to model jointly loss and delay behavior of real communication channel. Excellent performance in modelling typical channel behavior in a set of real packet links are observed. The system parameters are found via a modified version of the EM algorithm. Hidden state analysis shows how the state variables characterize channel dynamics. State-sequence estimation is obtained by use of the Viterbi algorithm. Real-time modelling...