Statistical multiplexing

Statistical multiplexing is a type of digital communication link sharing, sometimes abbreviated as STDM. It is very similar to dynamic bandwidth allocation (DBA). In statistical multiplexing, a communication channel is divided into an arbitrary number of variable bitrate digital channels or data streams. The link sharing is adapted to the instantaneous traffic demands of the data streams that are transferred over each channel. This is an alternative to creating a fixed sharing of a link, such as in general time division multiplexing (TDM) and frequency division multiplexing (FDM). When performed correctly, statistical multiplexing can provide a link utilization improvement, called the statistical multiplexing gain.