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In this paper, bandwidth allocation, in terms of distributing available data slots among different users, is studied for QoS provisioning in IEEE 802.16 networks. By considering the automatic repeat request with selective acknowledgement (ARQ-SA) scheme for erroneous wireless channels, a mathematical model is established to theoretically analyze the delay performance of transmitting service data unit (SDU) under a multiuser environment. The analytical results indicate that the delivery delay of the SDU is dominated by the time spent for the first transmission of all its protocol data units (PDUs). Based on this observation, a novel dynamic bandwidth allocation algorithm is proposed and a detailed performance analysis is provided. Simulation results show that the proposed bandwidth allocation algorithm can significantly improve the delay performance of SDUs and ensure the fairness among different users.