A virtual private network (VPN) functionality should include a performance guarantee provided to the customers. To provide guaranteed services, the network provider allocates appropriate capacities to multiple virtual backbone networks such that the underlying network can be shared among them. As VPN users are demanding reliable and dynamic allocation of capacities, recently the capacity resizing approach has been considered as a cost efficient way of providing virtual network services. We propose a new scheme for dynamic allocation of virtual link capacities. The allocated capacities are adjusted dynamically according to the users' requests such that their capacities are increased in a fair manner and the total reservation does not overwhelm the underlying network. Depending on the network's status and allocation policy, a virtual link may increase or decrease its capacity, for example, for a monetary incentive. VPN users send request packets whenever they want to resize their capacities, and the network handles them in an efficient and fair way. The simulation and analytic results shows that our scheme is simple and robust such that the link capacities are allocated in a efficient and fair manner.
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