* Also known as: Bits per Second *

Bits per Second (bps) is a commonly used unit of measurement in telecommunications for the rate or speed at which data is transferred. The **bps** indicates how many binary digits (the number of 0's and 1's) are transmitted or received in a serial form (one **bit** after another) each second.

In practice larger units are more convenient: one **kilobit** per second (kbps) is equal to 1,000 bps, one **Megabit** per second (Mbps) is equal to 1,000,000 bps or 1,000 kbps, one **Gigabit** per second (Gbps) is equal to 1,000,000,000 bps or 1,000 Mbps.

The bps is also an indication of a signal's bandwidth, and usually the higher the bps the greater is the signal **bandwidth** (a **frequency** measured in **kHz** or MHz).

The old measure of data speed was the **Baud** or baud rate, which is the number of times a digital signal changes state each second. For a given digital signal **Baud rate** is almost always a lower figure than bps, but Baud Rate and bps are often wrongly interchanged.