I have done a lot of reading as suggest . Now please help me with the setup of bandwidth management by ip.
firstly, you want to setup some qdiscs of different speeds/limits.
the type will depend on if you want to slow the traffic to a fixed speed, or limit the maximum speed.
http://www.lartc.org/howto/lartc.qdisc.html#LARTC.QDISC.EXPLAIN
then you need to create filters to put the traffic from the particular IPs into the appropriate queues.
http://www.lartc.org/howto/lartc.adv-filter.html#LARTC.ADV-FILTER.U32
it's really all in the examples in the howto.
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