Why are collisions significant?
Collisions happen occasionally on all networks become more frequent at high levels of network utilization; this is because, the more time devices spend waiting for the network, the more likely it is that another collision will occur with other devices also waiting to use the network. A high level of collisions indicates that the network is overutilized. Much of the network bandwidth is being wasted during collisions and the amount of data that can be transferred is reduced. At extreme levels of collisions, measured utilization may be fairly low due to this effect.