New optical network technologies provide opportunities for fast, controllable bandwidth management. These technologies can now explicitly provide resources to data paths, creating demand driven bandwidth reservation across networks where an applications bandwidth needs can be meet almost exactly. Dynamic synchronous Transfer Mode (DTM) is a gigabit network technology that provides channels with dynamically adjustable capacity. TCP is a reliable end-to-end transport protocol that adapts its rate to the available capacity. Both TCP and the DTM bandwidth can react to changes in the network load, creating a complex system with inter-dependent feedback mechanisms. The contribution of this work is an assessment of a bandwidth allocation scheme for TCP flows on variable capacity technologies. We have created a simulation environment using ns-2 and our results indicate that the allocation of bandwidth maximises TCP throughput for most flows, thus saving valuable capacity when compared to a scheme such as link over-provisioning. We highlight one situation where the allocation scheme might have some deficiencies against the static reservation of resources, and describe its causes. This type of situation warrants further investigation to understand how the algorithm can be modified to achieve performance similar to that of the fixed bandwidth case.