A state-dependent policy for call admission and routing in a multi-ser
vice circuit-switched network is synthesized. To meet different requir
ements the objective function is defined as the mean value of reward f
rom the network. Policy iteration is applied to find the optimal contr
ol. Assuming link independence the network reward process is decompose
d into the set of link reward processes thereby significantly reducing
complexity. The approach is implementable for large systems if certai
n approximations are used. A simulation study shows that the algorithm
converges in two iterations, exhibits good traffic efficiency, and pr
ovides a flexible tool for performance allocation among services. The
approach also constitutes a framework for studying, synthesizing and o
ptimizing other call admission and routing strategies. In particular t
he results of sensitivity analysis are used to compare the proposed de
composition approach with that developed by F.P.Kelly for optimization
of a load sharing policy in telephone networks.