STDM is an advanced version of TDM in which both the address of the terminal and the data itself are transmitted together for better routing. Using STDM allows bandwidth to be split over 1 line. Many college and corporate campuses use this type of TDM to logically distribute bandwidth.
If there is one 10MBit line coming into the building, STDM can be used to provide 178 terminals with a dedicated 56k connection (178 * 56k = 9.96Mb). A more common use however is to only grant the bandwidth when that much is needed. STDM does NOT reserve a time slot for each terminal, rather assign a slot when the terminal is requiring data to be sent/received.