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Advances in next-generation SONET/SDH along with GMPLS control have enabled many new service provisioning capabilities. A key paradigm is the new Layer 1 virtual private network (L1 VPN) framework, which allows clients to directly provision their own services without deploying expensive infrastructures. This paper proposes a novel L1 VPN resource management scheme for virtual concatenation-enabled nextgeneration SONET/SDH networks. The scheme is fully compatible with both centralized and distributed control frameworks and allows for dynamic resource sharing. Detailed performance analysis results are also presented.