###### Abstract
DWBA-II meets the system requirements and specifications of NG-EPON networks, handles the traffic requirements of subscribers in a cost-effective manner and is better than First-Fit DWBA and Modified-IPACT algorithms because of average delay, grant utilization, completion time and packet drop ratio. Neither proposed algorithm is oriented on increasing the bandwidth utilization. In [34], five different DWBA schemes are proposed with diverse customers and prioritized traffic for NG-PON2 systems. Mixed integer linear programming models are developed to minimize a total delay of the high-priority data, and heuristics algorithms are developed based on these models. Proposed schemes with priority class consideration show significant improvement in the total delay of the high-priority data as those are sent first. All the schemes either use single or all wavelengths. The proposed algorithm does not take into consideration that there can be an optimal number of wavelengths to allocate and bandwidth utilization to increase. On the effective bandwidth utilization of the transmission capacity related to dedicated wavelengths, the following algorithms are oriented. The First Fit Algorithm (FFA) DBA method indexes each wavelength in the NG-PON2 network from 1 up to \(W\), where \(W\) is a number of all wavelengths supported by the optical fiber. This algorithm is looking for free wavelengths in the fixed order. The first available wavelength is selected and no correlation between a spectrum localization and a dedicated index order is needed. An index order can be used for potential improvement of the network performance. Currently used wavelengths are ordered with lower indexes, and, thus, wavelengths with higher indexes can be available for longer transmission paths with higher probability [30]. The First Fit Algorithm is fast and can be utilized in both centralized and distributed network operations. This algorithm has an adequately low blocking and fairness probability, low overhead processing and low complexity. A problem arises in a situation in which the created connections are later cancelled, and an index order cannot guarantee a real wavelength allocation. The FFA index strategy is perceived just as short-term, and it loses its advantages with increasing changes in the network. This algorithm assigns only one wavelength to each ONU unit in each allocation cycle. Primarily, a wavelength that has the earliest starting time will be selected for the upstream transmission. It solves the problem of the delay so that it comes into existence by transmitting data frames on multiple wavelengths in various times and orders. However, the First Fit DBA algorithm cannot accommodate traffic loading variations of different ONU units or changes of active ONU units. The second Water-Filling Algorithm (WFA) DBA method is based on the Water-Filling approach. In contrast to the FFA, the WFA algorithm tries to balance the utilization of wavelength in each bandwidth allocation. The Water-Filling Algorithm always begins with the earliest starting time for decreasing a difference of starting times for all wavelengths. This means that the FFA algorithm can best work with a high number of ONU units, and the WFA algorithm has the best performance for a small number of ONU units in the NG-PON2 network. Because both algorithms cannot adaptively assign bandwidths on an available wavelength according to varying reported traffic-loading messages from ONU units [30], a key reason for looking for novel Effective Dynamic Bandwidth Algorithm (EDBA) is appearing. In this paper, the attention is focused on the effective bandwidth and wavelength utilization in future next-generation passive optical networks. In Section 1, principles of dynamic wavelength and bandwidth algorithms in NG-PON2 networks are presented, and reasons for investigating and implementing extended dynamic wavelength and bandwidth algorithms in these networks are analyzed. Section 2 is devoted to the novel effective DBA algorithm with the intention of its implementation in NG-PON2 networks.