Regulating the flow of packets into a network is called as "bandwidth throttling".
Regulating the flow of packets out of the network is called as "rate limiting".
It is used for number of purposes:
• In a corporate sector, business related traffic may be given priority over other traffic.
• A large Internet Service Provider (ISP) may shape the traffic of an independent reseller.
• Traffic shaping could be an integral part of the proposed two-tiered Internet, in which certain customers would get traffic priority for a premium charge.
• An ISP may limit bandwidth consumption for certain applications to reduce costs and create the capacity to take on additional subscribers. This practice can limit a subscriber's unlimited connection and is often imposed without notification.
• Time-sensitive data may be given priority over traffic that can be delayed briefly with little-to-no ill effect.
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