Bandwidth refers to the amount of data that can be transferred in a given time period, usually measured in bits per second. The document discusses how available bandwidth is important for PLATO Learning lessons and can become a bottleneck if a link in the network connection is much slower than others. It provides a case study of a school that thought it had enough bandwidth but was actually limited by its T1 connection to the district center. The school took steps like installing switches instead of hubs and prioritizing PLATO traffic to increase available bandwidth. The document provides various tools and guidelines to help evaluate network bandwidth and troubleshoot insufficient bandwidth issues.