METHOD OF ALLOCATING RESOURCES IN A TELECOMMUNICATIONS NETWORK

The invention provides a resource allocation method which is based on the concept of proportional fairness. In this method, users express their willingnesses to pay for network resources. A controller determines how the users' willingnesses to pay are to be divided between the resources in order to determine the relative demands for the resources. Each resource is then divided between those users using it in proportion to how much they are willing to pay for the use of their share of it. The allocation takes into account the relative demands on all the resources in the network. A user may increase his share of the network resources allocated to him by increasing the value of his willingness to pay. The method may be applied either by a central controller (network manager), or it may be delegated to controllers (network element managers/customer premises equipment managers) distributed across the network.