A physical layer device distributes a high-speed packet data stream to multiple lower-speed physical channels, and reverses the process to receive a high-speed packet data stream that has been distributed across multiple lower-speed physical channels. The packet data is distributed by removing interpacket gap characters from between packets and using a different control character to delineate packets. Interpacket gap characters can then be used to delineate equal-length frames distributed to each of the multiple physical channels. Each frame consists of a concatenation of fixed-size blocks of packet data. By selecting a frame size larger than the average packet size, overhead on the multiple physical channels can actually be lower than the overhead on the single high-speed channel, allowing the aggregation to achieve line rate operation at the high-speed rate.