An apparatus and method for equitably allocating bandwidth to virtual networks operating on a common physical network, such as a power-line network for homeowners sharing a single power-line distribution transformer. An ad-hoc master is selected from the virtual power-line network controllers. The master allocates bandwidth to streams based on their priority group categorization. By way of example, four priority groups (A-D) are described into which stream priority is classified, with the highest priority group for communicating isochronous streams, the lowest priority for transferring asynchronous streams and the other priority groups for communicating streams having an intermediate level of transmission priority. Within a given priority group all bandwidth requests are fulfilled for virtual networks requesting up to their fair share of the bandwidth within the priority group, and bandwidth available from virtual networks not utilizing their full share is allocated equally amongst those requesting more bandwidth.