A method for distributed spectrum management of digital communication systems having a plurality of communication lines on which signals are transmitted and received by respective users, the method comprising the steps of: collecting information about line, signal and interference characteristics of a plurality of the communication lines from a plurality of sources; determining the line, signal and interference characteristics of a plurality of the communication lines; varying power allocation of particular plurality of the communication lines between respective transmitter and receiver taking into consideration the determined line, signal and interference characteristics of a plurality of the communication lines and consideration of a noise weight of a plurality of the communication lines to enable a minimum power on a plurality of the communication lines and to allow required effective data-rates for each of said respective users to be satisfied.