A dynamic service level allocation system and method is disclosed in which a host, who has been allocated a bandwidth in which it can communicate with a satellite, shares this bandwidth with a user at the intermediate frequency level. The system includes a control module and a synchronization module that interact with the network operation center (NOC) of the host to adjust bandwidth and service level requirements of the host and user so that the bandwidth required by the user can be granted while maintaining the service level required by the host. The allocation of bandwidth between the user and host is done dynamically to accommodate the changing requirements of the user and the host.