Channel capacity (C):

The channel capacity is defined as the maximum data rate at which the digital date can be transmitted over the channel reliably.

The various concepts related to channel capacity are:

Data Rate:

It is defined as no. of bits transmitted by the transmitted per second. It indicates how fast a signal can be transmitted reliably over the given medium.

This capability depends on following:

1. The amount of energy put into transmitting each signal
2. Distance to be travelled
3. Noise
4. Channel Bandwidth

Channel Bandwidth:

The b.w of the communication medium should be large enough to transmit the digital signal reliably. An inadequate b.w will distort the signal and introduce errors into the received signal.