A system for managing resources such as buffers and bandwidth which are allocated to competing entities through two or more levels in a telecommunications network is disclosed. The system provides a tool to allocate resources for use by individual entities. Each entity may be assigned a Minimum.sub.-- Guaranteed variable and a Maximum.sub.-- Allowed variable. When an entity requests resources the system determines if the entity is using its respective minimum guaranteed resource allocation which is specified by the Minimum.sub.-- Guaranteed variable. If the entity is not using its respective minimum guaranteed resource allocation, the system allocates a resource unit to the requesting entity. The system also allows a requesting entity to use additional resource units above the resource allocation specified by the Minimum.sub.-- Guaranteed variable, provided such resource units are available. If the entity has reached its respective minimum guaranteed resource allocation, but has not reached the respective maximum allowed resource allocation specified by the Maximum.sub.-- Allowed variable and no intervening level is using its respective maximum allowed resource allocation, then a resource unit is allocated to the requesting entity.
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