The term "bandwidth" in networking refers to the maximum amount of data that can be transmitted over a connection in a given period, usually measured in bits per second (bps). Higher bandwidth allows for faster data transfer, which is crucial for activities requiring significant amounts of data, such as streaming videos or online gaming. Bandwidth is often confused with latency, which measures the delay in data transmission. Managing bandwidth effectively is essential for optimizing network performance, ensuring a smooth user experience, and balancing the load among multiple users on a shared network.