One way to solve this problem is to define an abstract network virtual terminal for which editors and other programs can be written to deal with. To handle each terminal type, a piece of software must be written to map the functions of the network virtual terminal onto the real terminal. For example, when the editor moves the virtual terminal's cursor to the upper left-hand corner of the screen, this software must issue the proper command sequence to the real terminal to get its cursor there too. All the virtual terminal software is in the application layer.

Another application layer function is file transfer. Different file systems have different file naming conventions, different ways of representing text lines, and so on. Transferring a file between two different systems requires handling these and other incompatibilities. This work, too, belongs to the application layer, as do electronic mail, remote job entry, directory lookup, and various other general-purpose and special-purpose facilities.