Update for Android Studio v 1.5 or greater

As @LouMorda mentioned in a comment below that the Emulator tab mentioned in original post has been removed in Android Studio v 1.5.

Now They've placed these settings in Simulator Settings in AVD Manager .

To access these settings:

Select Tools -> Android -> AVD Manager Click the Edit AVD button (pencil icon) The Network Settings can be accessed after clicking the Show Advanced Settings button

Here is a screenshot of how it may appear:



Original Post

For anyone using Android Studio IDE:

Go to Run -> Edit Configurations Select Android Application -> [Your App] Select Emulator tab Here you can change different values for Network Speed and Network Latency to simulate different speeds and latencies etc

Alternatively, you can enter various arguments in Additional command line options text field as mentioned in @inazaruk's answer.

The screenshot below describes how this Run Configuration screen looks like:

I know its a bit late to answer to this question, but i hope this helps others facing similar issues!

Edit

For anyone using eclipse, see @Abhi's answer below.