For communication networks comprising user devices, edge routers, core routers, access and core links, a specification is given for a novel method and apparatus computing and allocating fair transmission rates to user data flows from a plurality of quality of service levels. The fair rates satisfy the minimum transmission rates, the end-to-end delays and the data loss rates required by each flow and also avoid network congestion. The method comprises: an edge router process and a flow control shaper for each edge router and a core router process for each edge and core router. All processes are executed in a distributed and asynchronous manner, are stable and converge to the desired fair rates. Each flow shaper process shapes the transmission rates based on local measurements driving them to the desired fair rates. The processes are efficient and lend themselves into ASIC and network processor unit implementations.