In networking, what does the term 'bandwidth' refer to?

The term 'bandwidth' refers to the maximum data transmission capacity of a network path or link. It indicates the amount of data that can be transmitted over a specific period, typically measured in bits per second (bps). Higher bandwidth means that more data can be transferred simultaneously, which is essential for activities requiring high data rates, such as streaming video, online gaming, and large file transfers.

Understanding bandwidth is critical for network performance; it helps determine how efficiently data can be transmitted and ensures that the requirements of different applications are met. This makes effective bandwidth management crucial in maintaining optimal network performance and user experience.