Abstract: The idea of the invention is to negotiate the resource allocation between two network elements on the Application or Transport layer level so that the negotiation is possible over the network, even if the network comprises several physically different networks. To determine the transmission capacity for the allocation, the sending element must first send a request message with a proposal for the capacity and media types. The receiving element either accepts the proposal or makes a new proposal by changing the parameter values so that they are acceptable from the point of view of the receiver, and sends a response to the sending element. Based on the response from the receiving element, the sending element the either accepts or rejects the allocation and informs the receiving element of its decision by sending a confirmation.