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A wireless network supporting multilevel quality of service (QoS) is considered in this paper. In such a network, users or applications can tolerate a certain degree of QoS degradation. Bandwidth allocation to users can, therefore, be adjusted dynamically according to underlying network condition so as to increase bandwidth utilization and service provider's revenue. Instead of only focusing on bandwidth utilization or blocking/dropping probability, prediction based user-perceived QoS metrics; degradation ratio and upgrade/degrade is considered. It has been observed from the simulated results that the microcell based prediction algorithm has enhanced traffic handling capacity and reduced call dropping probability, call blocking probability, unsuccessful call probability and the call aggressiveness. Further, all the performance metrics are found to be lesser for the algorithm with degradation when compared to the one without degradation. This is because for an algorithm with bandwidth degradation, the system can support large number of users, hence reducing call dropping and blocking.