A method and system for providing fairness of capacity allocation in a network is presented. The method includes intercepting RSVP messages at a PE router, counting capacity requests for reservable classes of service for each VPN on each LSP, and rejecting requests when a VPN has inadequate capacity on the specific LSP. The present method allocates capacity to MPLS VPNs fairly, so that none is starved by the greediness of other VPNs sharing the same LSP.