An internet router is implemented as a network fabric of fabric routers and links. The internet router receives data packets from trunk lines or other internet links and analyzes header information in the data packets to route the data packets to output internet links. The line interface also analyzes the header to define a fabric path through the router fabric. The internet packets are broken into flits which are transferred through the router according to a wormhole routing protocol. Flits are stored in fabric routers at storage locations assigned to virtual channels corresponding to destination internet links. The virtual channels and links within the fabric define virtual networks in which congestion in one virtual network is substantially nonblocking to data flow through other virtual networks. Arbitration is performed at each fabric router to assign packets to virtual channels and to assign virtual channels to output fabric links. A virtual channel is enabled for possible assignment to an output fabric link upon receipt of an indication that an input buffer is available at the next fabric router of the path.