Is there a way to limit bandwidth in Linux?

Is there a way to limit bandwidth in Linux? I've setup a network which will have 3 users, two of them use a Windows based operating system and the other uses a Linux based one. It is a 12 MB ADSL2 connection and the idea is to distribute the bandwidth among the users (there is no server, just a Wi-Fi router).
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Guest [Entry]

Depending on your router it may support QoS. Which would make it so you did not have to install software on the client side.