Bandwidth is the primary driver of the network speed. It defines the overall connection capacity of any network. Higher bandwidth promotes better network performance; resulting in improved quality of service (QoS).Unavailability of internet connectivity due to low bandwidth is always a frustrating experience for users of the network in any organisation. It is not always the case that the bandwidth allocated to an organisation is inadequate but rather the problem sometimes rest with the internal distribution of the available bandwidth. This paper highlights the problems encountered by users as a result of low bandwidth. We explore the possible causes from a local distribution point of view, as well as discuss the existing systems or approaches to bandwidth allocation. As a conclusion to this work we propose a simple but optimized bandwidth allocation algorithm to assist institutions and organisations to optimally manage their allocated bandwidth. In this paper we consider University of Venda as the case study though the proposed algorithm can be applicable to any institution or organisation faced with similar challenges.