defines the number of data elements (bits) sent in 1s: bps Signal rate is the number of signal elements sent in 1s: baud Data rate = bit rate, signal rate = pulse rate, modulation rate, baud rate S = c x N x 1/r, where N is the date rate; c is the case factor, S is the number of signal elements; r is the number of data elements carried by each signal element Although the actual bandwidth of a digital signal is infinite, the effective bandwidth is finite The bandwidth is proportional to the signal rate (baud rate) The minimum bandwidth: Bmin = c x N x 1/r The maximum data rate: Nmax = 1/c x B x r