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Statistical time-division multiplexing (STDM) is a form of communication link sharing, which is almost identical to dynamic bandwidth allocation (DBA).
In STDM, a communication channel is split into a random range of variable bit-rate data streams or digital channels. The link sharing is tailored for the instantaneous traffic requirements of the data streams which are transmitted over every channel.
This type of multiplexing is a replacement for creating a fixed link sharing, such as in standard time division multiplexing (TDM) and frequency division multiplexing (FDM). Upon precise execution, STDM can offer an improvement in link utilization, referred to as the statistical multiplexing gain. STDM is facilitated by means of packet-mode or packet-oriented communication.