Statistical Multiplexing

Statistical multiplexing is a method of sharing multiple data streams over a single communication channel efficiently. Instead of dedicating fixed capacity to each stream, the system dynamically allocates bandwidth based on real-time demand, allowing multiple users or services to use the same channel more effectively. When some streams are inactive or need less data, the available capacity can be redistributed to others, optimizing overall utilization. This approach reduces wastage and increases efficiency, especially in networks with variable or unpredictable data traffic, ensuring a flexible and cost-effective way to manage multiple data transmissions concurrently.