A discrete-time, two-server queueing system is studied in this paper. The service time of a customer (cell) is fixed and equal to one time unit. Server 1 provides for periodic service of the queue (periodT). Server 2 provides for service only when server 1 is unavailable and provided that the associated service credit is nonzero. The resulting system is shown to model the queueing behavior of a network user which is subject to traffic regulation for congestion avoidance in high speed ATM networks. A general methodology is developed for the study of this queueing system, based on renewal theory. The dimensionality of the developed model is independent ofT;T increases with the network speed. The cell loss probabilities are computed in the case of finite capacity queue.