Bandwidth allocation refers to the process of distributing available network capacity among various users or applications. This ensures that each user or application receives the necessary amount of data transfer speed to function effectively. Proper allocation helps maintain optimal performance and prevents any single user from monopolizing the network. Effective bandwidth allocation can be crucial in environments with multiple users, such as offices or data centers. By prioritizing certain types of traffic, like video conferencing or online gaming, network administrators can enhance user experience and minimize delays. This strategic distribution helps maintain a balanced and efficient network.