diff --git a/server/src/com/cloud/configuration/ConfigurationManagerImpl.java b/server/src/com/cloud/configuration/ConfigurationManagerImpl.java
index 3328b7c83fe..893ee4e441b 100755
--- a/server/src/com/cloud/configuration/ConfigurationManagerImpl.java
+++ b/server/src/com/cloud/configuration/ConfigurationManagerImpl.java
@@ -2045,8 +2045,13 @@ public class ConfigurationManagerImpl extends ManagerBase implements Configurati
             allowNetworkRate = true;
         }
 
-        if (cmd.getNetworkRate() != null && !allowNetworkRate) {
-            throw new InvalidParameterValueException("Network rate can be specified only for non-System offering and system offerings having \"domainrouter\" systemvmtype");
+        if (cmd.getNetworkRate() != null) {
+            if(!allowNetworkRate) {
+                throw new InvalidParameterValueException("Network rate can be specified only for non-System offering and system offerings having \"domainrouter\" systemvmtype");
+            }
+            if(cmd.getNetworkRate().intValue() <= 1) {
+                throw new InvalidParameterValueException("Failed to create service offering " + name + ": specify the network rate value more than 0");
+            }
         }
 
         if (cmd.getDeploymentPlanner() != null) {