Channel Capacity The maximum rate at which data can be transmitted over a given communication path, or channel, under given conditions is referred to as the channel capacity Channel Capacity Depends on The Following Factors. Data rate : This is the rate, in bits per second (bps), at which data can be communicated. Data rate depends upon 3 factors : The bandwidth available Number of levels in digital signal The quality of the channel – level of noise Bandwidth : This is the bandwidth of the transmitted signal as constrained by the transmitter and the nature of the transmission medium, expressed in cycles per second, or Hertz. Noise : We are concerned with the average level of noise over the communications path. Error rate : This is the rate at which errors occur, where an error is the reception of a 1 when a 0 was transmitted or the reception of a 0 when a 1 was transmitted