The bandwidth and the noise power limit the rate of information that can be transmitted by a channel. It says that a channel that is disturbed by white Gaussian noise, can transmit information at a rate of C bits per second.
C = channel capacity
Mathematically,
C = Bandwith * log2 (1+SNR)
C= B*log2 (1+S/N)
in this expression,
B=Bandwidth of this channel in Hz
S=Signal Power
N=Noise power
Theoretical limitations:
- For noiseless channels N=0 then the value of SNR is infinite and the channel capacity is infinite. But practically N is finite and Hence, C is finite.
- This is true even if the bandwidth B is infinite. The noise signal is a white noise with a uniform power density spectrum over the entire frequency range. Therefore, as the bandwidth B is increased, N also increases, and Hence the channel capacity remains finite even if B=infinite.