Virtual Path (VP) concept has gained attention in terms of effective deployment of ATM networks for wide-area environment. In this paper, we present models and algorithms for network design and management of ATM networks based on virtual path concept from a network planning perspective. Our approach is based on statistical multiplexing of traffic within a traffic class by using a virtual path for the class and deterministic multiplexing of different virtual paths, and on providing dynamic bandwidth and reconfigurability through virtual path concept depending on traffic load during the course of the day. For some realistic example networks, we observe that considering network dynamism through variation of traffic during the course of a day by doing dynamic bandwidth and virtual path reconfiguration can save between 10 to 14% in network design costs compared to a static network based on maximum busy hour traffic.