Bandwidth Command under interface

Hi Experts,

Using this blog:
http://blogs.manageengine.com/netflowanalyzer/2009/09/17/interface-link-speed-vs-interface-bandwidth-command-what-netflow-analyzer-reports

I was able to find this information.

What is bandwidth command in router?

Often users complain about not getting the speed set at the interface in the
product or about incorrect utilization reports. User data rate depends on
the operating link speed/bandwidth and not the bandwidth configured in the
interface using the IOS bandwidth command. The bandwidth configured on the
interface is to help routing protocols choose the best route to transmit the
packets. We recommend our users to set the link speed as the bandwidth in
the interface for efficient routing.

Can someone confirm that the bandwidth statement under the interface only
relates to routing protocols and has nothing to do with the data rate? So
the only solution let us say to deploy a QOS for an enterprise which has 4
Mbps bandwidth connection is to used nested policies where the outer policy
does a shaping to the desired rate, and calls an inner policy which in turn
tunes different classes within this shaped rate (outer policy).

Sorry to disturb and thank you again for your support!

-- 
KJ
Blogs and organic groups at http://www.ccie.net