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To improve the resource utilization ratio and shorten the recovery time of the shared path protection with differentiated reliability (SPP-DiR) algorithm, an algorithm called dynamic shared segment protection with differentiated reliability (DSSP-DiR) is proposed for survivable GMPLS networks. In the proposed algorithm, a primary path is dynamically divided into several segments according to the differentiated reliability requirements of the customers. In the SPP-DiR algorithm, the whole primary path should be protected, while in the DSSPDiR algorithm, only partial segments on the primary path need to be protected, which can reduce more backup bandwidths than that in the SPP-DiR algorithm. Simulation results show that the DSSP-DiR algorithm achieves higher resource utilization ratio, lower protection failure probability, and shorter recovery time than the SPP-DiR algorithm.