This paper attempts to establish the fact that Multi State Network Classification is essential for performance enhancement of Transport protocols over Satellite based Networks. A model to classify Multi State network condition taking into consideration both congestion and channel error is evolved. In order to arrive at such a model an analysis of the impact of congestion and channel error on RTT values has been carried out using ns2. The analysis results are also reported in the paper. The inference drawn from this analysis is used to develop a novel statistical RTT based model for multi state network classification. An Adaptive Multi State Proactive Transport Protocol consisting of Proactive Slow Start,State based Error Recovery, Timeout Action and Proactive Reduction is proposed which uses the multi state network state classification model. This paper also confirms through detail simulation and analysis that a prior knowledge about the overall characteristics of the network helps i