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The IEEE 802.16 standard is one of the most promising broadband wireless access systems. The standard incorporates a QoS architecture that supports both realtime and non-realtime applications. To provide QoS three data schedulers are furnished by the architecture. However, the working of the schedulers are not defined by the standard. Some researchers have attempted to fill this gap by providing different scheduling schemes. However, no scheme has yet been adapted by the standard and the area is still open for new research. In this article we propose Two-Level Scheduling Algorithm (TLSA) that ensures QoS for all service classes, while avoiding starvation of lower priority classes. Furthermore, it ensures fair resource allocation among flows of the same class. The simulation results show that the algorithm is effective and efficient.