Virtual Private Network Design is the following NP-hard problem. We are given a communication network, represented as a weighted graph with thresholds on the nodes which represent the amount of flow that a node can send to and receive from the network. The task is to reserve capacities at minimum cost and to specify paths between every ordered pair of nodes such that all valid trafficmatrices can be routed along the corresponding paths. Recently, this network design problem has received considerable attention in the literature. It is motivated by the fact that the exact amount of flow which is exchanged between terminals is not known in advance and prediction is often illusive. The main contributions of this paper are as follows: • Using Hu’s 2-commodity flow theorem, we provide a new and considerably stronger lower bound on the cost of an optimum solution. With this lower bound we reanalyze a simple routing scheme which has been described in the literature many times, and pro...