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In data communication, the transmission medium is also known as channel. The capacity of a channel is the maximum amount of signals or traffic that a channel can carry. It is measured in terms of bandwidth and data transfer rate as described below:

Bandwidth 

Bandwidth of a channel is the range of frequencies available for transmission of data through that channel.  

Higher the bandwidth, higher the data transfer rate.

Normally, bandwidth is the difference of maximum and Minimum  frequency contained in the composite signals.  

Bandwidth is measured in Hertz (Hz).

1 KHz =1000 Hz

1 MHz =1000 KHz = 1000000 Hz

Data Transfer Rate

Data travels in the form of signals over a channel. One signal carries one or more bits over the channel. Data transfer rate is the number of bits transmitted between source and destination in one second. It is also known as bit rate. It is measured in terms of bits per second (bps). The higher units for data transfer rates are: 

1 Kbps=1024 bps

1 Mbps=1024 Kbps

1 Gbps=1024 Mbps

1 Tbps=1024 Gbps

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