This dissertation describes the development of a new system whereby the Public Switch Telephone Network (PSTN), which is not secure, can perform like a private network. Integrated Services Digital Network (ISDN) forms a technical platform for other communication technologies, such as frame relay and Switched Megabit Data Service (SMDS). This is an original and innovative hardware and software design which can be embedded into the ISDN Customer Premises Equipment (CPE) to privatize the public ISDN without the need to upgrade the existing switching equipment. This research incorporates original design and development of the following hardware and software modules to provide real-time encryption and decryption of images and data in the ISDN me...