A technique efficiently manages bandwidth (BW) for multipoint-to-multipoint (MP2MP) services in a provider network of a computer network. According to the novel technique, each bridge having a user-network interface (UNI) port of an MP2MP service generates a registration for the service that carries maximum BW values for each port direction (e.g., for each {service, priority, color} triple), e.g., as defined by a Service Level Agreement (SLA). The registrations are advertised among neighboring bridges throughout the network toward other UNI ports of the MP2MP service. As each bridge receives registrations from each neighboring bridge (or from the UNI port), the bridge advertises registered BW values pertaining to a particular direction on a particular one of its ports that correspond to the sum of the BW values for that direction received on all of the other ports of the bridge, up to a maximum BW value (e.g., configured or physical) for the particular port. The actual BW required for allocation on an active port for each direction is the lower of either the registered value advertised from the port in a particular direction or the registered value received at the port in the opposite direction.