diff --git a/src/pgm_receiver.cpp b/src/pgm_receiver.cpp
index 6ea310c7..f68a909b 100644
--- a/src/pgm_receiver.cpp
+++ b/src/pgm_receiver.cpp
@@ -61,12 +61,12 @@ zmq::pgm_receiver_t::~pgm_receiver_t ()
         delete decoder;
 }
 
-int zmq::pgm_receiver_t::init (const char *network_)
+int zmq::pgm_receiver_t::init (bool udp_encapsulation_, const char *network_)
 {
     decoder = new zmq_decoder_t;
     zmq_assert (decoder);
 
-    return pgm_socket.init (network_);
+    return pgm_socket.init (udp_encapsulation_, network_);
 }
 
 void zmq::pgm_receiver_t::plug (i_inout *inout_)
diff --git a/src/pgm_receiver.hpp b/src/pgm_receiver.hpp
index 53d53402..05b27e24 100644
--- a/src/pgm_receiver.hpp
+++ b/src/pgm_receiver.hpp
@@ -44,7 +44,7 @@ namespace zmq
             const char *session_name_);
         ~pgm_receiver_t ();
 
-        int init (const char *network_);
+        int init (bool udp_encapsulation_, const char *network_);
         void reconnect ();
 
         //  i_engine interface implementation.
diff --git a/src/pgm_sender.cpp b/src/pgm_sender.cpp
index 9b1cef42..423865b0 100644
--- a/src/pgm_sender.cpp
+++ b/src/pgm_sender.cpp
@@ -59,9 +59,9 @@ zmq::pgm_sender_t::pgm_sender_t (io_thread_t *parent_,
 
 }
 
-int zmq::pgm_sender_t::init (const char *network_)
+int zmq::pgm_sender_t::init (bool udp_encapsulation_, const char *network_)
 {
-    return pgm_socket.init (network_);
+    return pgm_socket.init (udp_encapsulation_, network_);
 }
 
 void zmq::pgm_sender_t::plug (i_inout *inout_)
@@ -157,7 +157,7 @@ void zmq::pgm_sender_t::out_event ()
 
         //  We can write all data or 0 which means rate limit reached.
         if (write_size - write_pos != nbytes && nbytes != 0) {
-            zmq_log (1, "write_size - write_pos %i, nbytes %i, %s(%i)",
+            zmq_log (2, "write_size - write_pos %i, nbytes %i, %s(%i)",
                 (int)(write_size - write_pos), (int)nbytes, __FILE__, __LINE__);
             assert (false);
         }
@@ -180,11 +180,9 @@ void zmq::pgm_sender_t::out_event ()
 size_t zmq::pgm_sender_t::write_one_pkt_with_offset (unsigned char *data_, 
     size_t size_, uint16_t offset_)
 {
-    zmq_log (1, "data_size %i, first message offset %i, %s(%i)\n",
+    zmq_log (4, "data_size %i, first message offset %i, %s(%i)\n",
         (int) size_, offset_, __FILE__, __LINE__);
 
-    std::cout << std::flush;
-
     //  Put offset information in the buffer.
     put_uint16 (data_, offset_);
    
diff --git a/src/pgm_sender.hpp b/src/pgm_sender.hpp
index 80be8d4d..8fdda6cc 100644
--- a/src/pgm_sender.hpp
+++ b/src/pgm_sender.hpp
@@ -42,7 +42,7 @@ namespace zmq
             const char *session_name_);
         ~pgm_sender_t ();
 
-        int init (const char *network_);
+        int init (bool udp_encapsulation_, const char *network_);
 
         //  i_engine interface implementation.
         void plug (struct i_inout *inout_);
diff --git a/src/pgm_socket.cpp b/src/pgm_socket.cpp
index 315b43ea..8ceff6c7 100644
--- a/src/pgm_socket.cpp
+++ b/src/pgm_socket.cpp
@@ -68,24 +68,12 @@ zmq::pgm_socket_t::pgm_socket_t (bool receiver_, const options_t &options_) :
     
 }
 
-int zmq::pgm_socket_t::init (const char *network_)
+int zmq::pgm_socket_t::init (bool udp_encapsulation_, const char *network_)
 {
-    //  Check if we are encapsulating into UDP, natwork string has to 
-    //  start with udp:.
-    const char *network_ptr = network_;
-
-    if (strlen (network_) >= 4 && network_ [0] == 'u' && 
-          network_ [1] == 'd' && network_ [2] == 'p' && 
-          network_ [3] == ':') {
-    
-        //  Shift interface_ptr after ':'.
-        network_ptr += 4;
-
-        udp_encapsulation = true;
-    }
+    udp_encapsulation = udp_encapsulation_;
  
     //  Parse port number.
-    const char *port_delim = strchr (network_ptr, ':');
+    const char *port_delim = strchr (network_, ':');
     if (!port_delim) {
         errno = EINVAL;
         return -1;
@@ -93,20 +81,13 @@ int zmq::pgm_socket_t::init (const char *network_)
 
     port_number = atoi (port_delim + 1);
   
-    //  Store interface string.
-    if (port_delim <= network_ptr) {
-        errno = EINVAL;
-        return -1;
-    }
-
-    if (port_delim - network_ptr >= (int) sizeof (network) - 1) {
+    if (port_delim - network_ >= (int) sizeof (network) - 1) {
         errno = EINVAL;
         return -1;
     }
 
     memset (network, '\0', sizeof (network));
-    memcpy (network, network_ptr, port_delim - network_ptr);
-
+    memcpy (network, network_, port_delim - network_);
 
     zmq_log (1, "parsed: network  %s, port %i, udp encaps. %s, %s(%i)\n", 
         network, port_number, udp_encapsulation ? "yes" : "no",
@@ -364,7 +345,7 @@ int zmq::pgm_socket_t::open_transport (void)
             return -1;
         }
 
-        zmq_log (1, "Preallocated %i slices in TX window. %s(%i)\n", 
+        zmq_log (2, "Preallocated %i slices in TX window. %s(%i)\n", 
             to_preallocate, __FILE__, __LINE__);
 
         //  Set interval of background SPM packets [us].
@@ -611,7 +592,7 @@ ssize_t zmq::pgm_socket_t::receive (void **raw_data_)
 
         //  Catch the rest of the errors.
         if (nbytes_rec <= 0) {
-            zmq_log (1, "received %i B, errno %i, %s(%i)", (int)nbytes_rec, 
+            zmq_log (2, "received %i B, errno %i, %s(%i)", (int)nbytes_rec, 
                 errno, __FILE__, __LINE__);
             errno_assert (nbytes_rec > 0);
         }
diff --git a/src/pgm_socket.hpp b/src/pgm_socket.hpp
index 632288d9..fe4468b6 100644
--- a/src/pgm_socket.hpp
+++ b/src/pgm_socket.hpp
@@ -52,7 +52,7 @@ namespace zmq
         ~pgm_socket_t ();
 
         //  Initialize PGM network structures (GSI, GSRs).
-        int init (const char *network_);
+        int init (bool udp_encapsulation_, const char *network_);
 
         //  Open PGM transport. Parameters are the same as in constructor.
         int open_transport (void);
diff --git a/src/socket_base.cpp b/src/socket_base.cpp
index 88ba43f7..570be9e8 100644
--- a/src/socket_base.cpp
+++ b/src/socket_base.cpp
@@ -208,7 +208,7 @@ int zmq::socket_base_t::bind (const char *addr_)
     }
 
 #if defined ZMQ_HAVE_OPENPGM
-    if (addr_type == "pgm") {
+    if (addr_type == "pgm" || addr_type == "udp") {
         //  In the case of PGM bind behaves the same like connect.
         return connect (addr_); 
     }
@@ -287,7 +287,12 @@ int zmq::socket_base_t::connect (const char *addr_)
     }
 
 #if defined ZMQ_HAVE_OPENPGM
-    if (addr_type == "pgm") {
+    if (addr_type == "pgm" || addr_type == "udp") {
+
+        //  For udp, pgm transport with udp encapsulation is used.
+        bool udp_encapsulation = false;
+        if (addr_type == "udp")
+            udp_encapsulation = true;
 
         switch (type) {
 
@@ -298,7 +303,7 @@ int zmq::socket_base_t::connect (const char *addr_)
                 new pgm_sender_t (choose_io_thread (options.affinity), options, 
                 session_name.c_str ());
 
-            int rc = pgm_sender->init (addr_args.c_str ());
+            int rc = pgm_sender->init (udp_encapsulation, addr_args.c_str ());
             if (rc != 0) {
                 delete pgm_sender;
                 return -1;
@@ -320,7 +325,7 @@ int zmq::socket_base_t::connect (const char *addr_)
                 new pgm_receiver_t (choose_io_thread (options.affinity), options, 
                 session_name.c_str ());
 
-            int rc = pgm_receiver->init (addr_args.c_str ());
+            int rc = pgm_receiver->init (udp_encapsulation, addr_args.c_str ());
             if (rc != 0) {
                 delete pgm_receiver;
                 return -1;