No / Fairness in bandwidth resource allocation is highly significance to the advancement of the future generation mobile and wireless technologies. It is likely that restriction of bandwidth due to the employment of some scheduling scheme would not be an appropriate option for the future development of communication systems. However, there is need to consider an implementation that would lead to good network performance and avoid unguaranteed bandwidth delivery. This paper focusses on evaluating the performance of Bandwidth Allocation using Dynamic Label Switching Paths (LSPs) Tunnelling and Label Distribution Protocol (LDP) signalling in Multi-Protocol Label Switching (MPLS) network. This will make provision for bandwidth allocation and reservation possible. An appropriate bandwidth allocation would have a positive impact on throughput as well as the delay. The results of an IP (Internet Protocol) Network without MPLS enabled is compared with MPLS model network. Furthermore, implementation of dynamic and static LSPs models are presented with about 75% decrease in packet delay variation for dynamic LSP when compared from static LSP. In addition, the models of bandwidth estimation, bandwidth allocation, delay and jitter are provided. Performance metrics used in this respect for multimedia services (Voice and Video conferencing) confirm that the modified models are improved in comparison with the baseline, having highest throughput of about 51% increment, and packet delay variation decreases drastically.