diff --git a/api/src/com/cloud/api/commands/CreateServiceOfferingCmd.java b/api/src/com/cloud/api/commands/CreateServiceOfferingCmd.java
index 40ae8b99ed3..ebda8306350 100644
--- a/api/src/com/cloud/api/commands/CreateServiceOfferingCmd.java
+++ b/api/src/com/cloud/api/commands/CreateServiceOfferingCmd.java
@@ -78,6 +78,9 @@ public class CreateServiceOfferingCmd extends BaseCmd {
     @Parameter(name=ApiConstants.SYSTEM_VM_TYPE, type=CommandType.STRING, description="the system VM type. Possible types are \"consoleproxy\" and \"secondarystoragevm\".")
     private String systemVmType;
     
+    @Parameter(name=ApiConstants.NETWORKRATE, type=CommandType.INTEGER, description="data transfer rate in megabits per second allowed.")
+    private Integer networkRate;
+    
     /////////////////////////////////////////////////////
     /////////////////// Accessors ///////////////////////
     /////////////////////////////////////////////////////
@@ -133,6 +136,10 @@ public class CreateServiceOfferingCmd extends BaseCmd {
     public String getSystemVmType() {
         return systemVmType;
     }
+    
+    public Integer getNetworkRate() {
+        return networkRate;
+    }
 
     /////////////////////////////////////////////////////
     /////////////// API Implementation///////////////////
diff --git a/server/src/com/cloud/configuration/ConfigurationManager.java b/server/src/com/cloud/configuration/ConfigurationManager.java
index ca43e348081..4f2f38c5755 100644
--- a/server/src/com/cloud/configuration/ConfigurationManager.java
+++ b/server/src/com/cloud/configuration/ConfigurationManager.java
@@ -58,7 +58,6 @@ public interface ConfigurationManager extends ConfigurationService, Manager {
 
 	/**
 	 * Creates a new service offering
-	 * @param id
 	 * @param name
 	 * @param cpu
 	 * @param ramSize
@@ -66,12 +65,14 @@ public interface ConfigurationManager extends ConfigurationService, Manager {
 	 * @param displayText
 	 * @param localStorageRequired
 	 * @param offerHA
-	 * @param useVirtualNetwork
 	 * @param domainId
 	 * @param hostTag
+	 * @param networkRate TODO
+	 * @param id
+	 * @param useVirtualNetwork
 	 * @return ID
 	 */
-	ServiceOfferingVO createServiceOffering(long userId, boolean isSystem, VirtualMachine.Type vm_typeType, String name, int cpu, int ramSize, int speed, String displayText, boolean localStorageRequired, boolean offerHA, boolean limitResourceUse, String tags, Long domainId, String hostTag);
+	ServiceOfferingVO createServiceOffering(long userId, boolean isSystem, VirtualMachine.Type vm_typeType, String name, int cpu, int ramSize, int speed, String displayText, boolean localStorageRequired, boolean offerHA, boolean limitResourceUse, String tags, Long domainId, String hostTag, Integer networkRate);
 	
 	/**
 	 * Creates a new disk offering
@@ -171,11 +172,12 @@ public interface ConfigurationManager extends ConfigurationService, Manager {
 	 * @param tags
 	 * @param maxConnections
 	 * @param guestIpType TODO
+	 * @param networkRate TODO
 	 * @param id
 	 * @param specifyVlan;
      * @return network offering object
      */
-    NetworkOfferingVO createNetworkOffering(long userId, String name, String displayText, TrafficType trafficType, String tags, Integer maxConnections, boolean specifyVlan, Availability availability, GuestIpType guestIpType);
+    NetworkOfferingVO createNetworkOffering(long userId, String name, String displayText, TrafficType trafficType, String tags, Integer maxConnections, boolean specifyVlan, Availability availability, GuestIpType guestIpType, Integer networkRate);
     
     Vlan createVlanAndPublicIpRange(Long userId, Long zoneId, Long podId, String startIP, String endIP, String vlanGateway, String vlanNetmask, boolean forVirtualNetwork, String vlanId, Account account, Long networkId) throws InsufficientCapacityException, ConcurrentOperationException, InvalidParameterValueException;
     
diff --git a/server/src/com/cloud/configuration/ConfigurationManagerImpl.java b/server/src/com/cloud/configuration/ConfigurationManagerImpl.java
index 67676041e5a..ccef081f94e 100755
--- a/server/src/com/cloud/configuration/ConfigurationManagerImpl.java
+++ b/server/src/com/cloud/configuration/ConfigurationManagerImpl.java
@@ -1624,15 +1624,15 @@ public class ConfigurationManagerImpl implements ConfigurationManager, Configura
         }
 
         return createServiceOffering(userId, cmd.getIsSystem(), vm_type, cmd.getServiceOfferingName(), cpuNumber.intValue(), memory.intValue(), cpuSpeed.intValue(), cmd.getDisplayText(), localStorageRequired, offerHA,
-                limitCpuUse, cmd.getTags(), cmd.getDomainId(), cmd.getHostTag());
+                limitCpuUse, cmd.getTags(), cmd.getDomainId(), cmd.getHostTag(), cmd.getNetworkRate());
     }
 
     @Override
     @ActionEvent(eventType = EventTypes.EVENT_SERVICE_OFFERING_CREATE, eventDescription = "creating service offering")
     public ServiceOfferingVO createServiceOffering(long userId, boolean isSystem, VirtualMachine.Type vm_type, String name, int cpu, int ramSize, int speed, String displayText, boolean localStorageRequired, 
-            boolean offerHA, boolean limitResourceUse, String tags,  Long domainId, String hostTag) {
+            boolean offerHA, boolean limitResourceUse, String tags,  Long domainId, String hostTag, Integer networkRate) {
         tags = cleanupTags(tags);
-        ServiceOfferingVO offering = new ServiceOfferingVO(name, cpu, ramSize, speed, null, null, offerHA, limitResourceUse, displayText, localStorageRequired, false, tags, isSystem, vm_type, domainId, hostTag);
+        ServiceOfferingVO offering = new ServiceOfferingVO(name, cpu, ramSize, speed, networkRate, null, offerHA, limitResourceUse, displayText, localStorageRequired, false, tags, isSystem, vm_type, domainId, hostTag);
 
         if ((offering = _serviceOfferingDao.persist(offering)) != null) {
             UserContext.current().setEventDetails("Service offering id=" + offering.getId());
@@ -2789,6 +2789,7 @@ public class ConfigurationManagerImpl implements ConfigurationManager, Configura
         Boolean specifyVlan = cmd.getSpecifyVlan();
         String availabilityStr = cmd.getAvailability();
         String guestIpTypeString = cmd.getGuestIpType();
+        Integer networkRate = cmd.getNetworkRate();
 
         TrafficType trafficType = null;
         GuestIpType guestIpType = null;
@@ -2829,15 +2830,14 @@ public class ConfigurationManagerImpl implements ConfigurationManager, Configura
         }
 
         Integer maxConnections = cmd.getMaxconnections();
-        return createNetworkOffering(userId, name, displayText, trafficType, tags, maxConnections, specifyVlan, availability, guestIpType);
+        return createNetworkOffering(userId, name, displayText, trafficType, tags, maxConnections, specifyVlan, availability, guestIpType, networkRate);
     }
 
     @Override
     public NetworkOfferingVO createNetworkOffering(long userId, String name, String displayText, TrafficType trafficType, String tags, Integer maxConnections, boolean specifyVlan,
-            Availability availability, GuestIpType guestIpType) {
-        String networkRateStr = _configDao.getValue("network.throttling.rate");
+            Availability availability, GuestIpType guestIpType, Integer networkRate) {
+        
         String multicastRateStr = _configDao.getValue("multicast.throttling.rate");
-        int networkRate = ((networkRateStr == null) ? 200 : Integer.parseInt(networkRateStr));
         int multicastRate = ((multicastRateStr == null) ? 10 : Integer.parseInt(multicastRateStr));
         tags = cleanupTags(tags);