Abstract: A method and system for data traffic management in telecommunications networks is presented. End user data streams are aggregated to achieve more efficient use of a communication channel. Bandwidth is dynamically allocated to the data streams of the various users, effectively reducing their communications costs. The system includes a class of service selector and a plurality of stream selectors. Each stream selector is associated with a single budget category. Data is placed into queues according to a priority assigned by the end user. Data packets are transmitted from their queues through the class of service selector and through one of the stream selectors in response to the traffic provided by the end users and the budget category subscriptions of the end users.

Abstract: The invention allocates a portion of the common bandwidth resource to each network element, and each network element distributes its allocated portion locally using a fair distribution algorithm. In accordance with the invention, each network element determines its “local satisfaction”. “Global fairness” is achieved when local satisfaction is balanced between all of the network elements. This balance can include situations where the satisfaction values of all of the network elements are equal. This balance can also include situations where the working priority class of each of the backlogged network elements is the same. In one embodiment, the invention dynamically allocates portions of the common bandwidth resource using a control algorithm that strives to keep the satisfaction values equal among the network elements.