Describe MPLS Layer 3 VPN

📘CCNP Enterprise – ENARSI (300-410)


1. What Is an MPLS Layer 3 VPN?

An MPLS Layer 3 VPN (L3VPN) is a service provider technology that allows multiple customers to connect their private IP networks over a shared MPLS backbone, while keeping their routing information completely separate and secure.

  • Routing happens at Layer 3 (IP layer)
  • The service provider manages routing
  • Customers do not see each other’s routes
  • MPLS labels are used to forward traffic efficiently

👉 For the exam:
MPLS L3 VPN = Private routed networks over a shared MPLS core


2. Why MPLS Layer 3 VPN Is Needed

Without MPLS L3 VPN:

  • Customers need complex tunneling (GRE, IPsec)
  • Service provider must build separate networks
  • Scalability becomes difficult

With MPLS L3 VPN:

  • One shared backbone
  • Thousands of customers
  • Each customer has its own routing table
  • Easy to scale and manage

👉 For ENARSI:
Main purpose = scalable, secure, multi-customer routing over MPLS


3. Key Devices in MPLS Layer 3 VPN

3.1 CE Router (Customer Edge)

  • Located at customer site
  • Connects customer network to provider
  • Does NOT run MPLS
  • Exchanges routes with PE router

CE routers can use:

  • Static routing
  • OSPF
  • EIGRP
  • BGP

👉 Exam point:
CE routers are unaware of MPLS and VPNs


3.2 PE Router (Provider Edge)

  • Connects customers to MPLS backbone
  • Runs MPLS
  • Maintains separate routing tables per customer
  • Uses VRF

PE routers:

  • Add VPN labels
  • Exchange VPN routes using MP-BGP

👉 Exam point:
PE router is the most important device in MPLS L3 VPN


3.3 P Router (Provider/Core Router)

  • Inside the service provider core
  • Only switches MPLS labels
  • Does NOT know customer routes
  • Does NOT use VRF

👉 Exam point:
P routers only forward labels, no customer awareness


4. VRF (Virtual Routing and Forwarding)

4.1 What Is a VRF?

A VRF is a separate routing table on a PE router.

Each customer:

  • Has its own VRF
  • Can use overlapping IP addresses
  • Is fully isolated from other customers

Example concept:

  • Customer A: 10.0.0.0/8
  • Customer B: 10.0.0.0/8
  • Both coexist because they are in different VRFs

👉 Exam keyword:
VRF = multiple virtual routers on one physical router


4.2 Components of a VRF

Each VRF contains:

  • Routing table
  • CEF table
  • Interfaces assigned to that VRF
  • Route Distinguisher (RD)
  • Route Targets (RT)

5. Route Distinguisher (RD)

5.1 What Is an RD?

An RD is a value added to an IPv4 route to make it globally unique.

  • Converts IPv4 routes into VPNv4 routes
  • Used only for uniqueness
  • Not used for route filtering

Format:

RD:IPv4-prefix

Example:

100:1 + 10.1.1.0/24 → VPNv4 route

👉 Exam point:

  • RD ensures uniqueness
  • RD does NOT control route import/export

6. Route Target (RT)

6.1 What Is a Route Target?

A Route Target (RT) is a BGP extended community used to:

  • Control which routes are imported or exported
  • Decide who can see whose routes

RTs are used for VPN membership


6.2 Import and Export RTs

  • Export RT: attached to routes when advertised
  • Import RT: determines which routes are accepted

For two sites to communicate:

  • Export RT of Site A must match Import RT of Site B

👉 Exam point:
RT controls VPN connectivity


7. MP-BGP (Multiprotocol BGP)

7.1 Why MP-BGP Is Required

Normal BGP cannot carry:

  • VPN labels
  • VRF information
  • Route Targets

MP-BGP is used to:

  • Exchange VPNv4 routes between PE routers
  • Carry:
    • Customer IP prefix
    • RD
    • RT
    • MPLS VPN label

👉 Exam fact:
MPLS L3 VPN relies on MP-BGP


7.2 VPNv4 Address Family

  • Used only between PE routers
  • Contains:
    • IPv4 prefix
    • RD
    • RT
    • Label

P routers do not participate in MP-BGP VPNv4.


8. Label Stack in MPLS L3 VPN

MPLS L3 VPN uses two labels:

8.1 Outer Label (Transport Label)

  • Used to reach the egress PE
  • Distributed by:
    • LDP or RSVP
  • Switched by P routers

8.2 Inner Label (VPN Label)

  • Identifies the VRF
  • Assigned by the egress PE
  • Used only at the final PE router

👉 Exam point:
MPLS L3 VPN uses a two-label stack


9. Packet Flow (High-Level)

  1. CE sends IP packet to PE
  2. PE:
    • Looks up VRF
    • Adds VPN label
    • Adds transport label
  3. P routers:
    • Switch only outer label
  4. Egress PE:
    • Removes outer label
    • Uses inner label to select VRF
  5. Packet forwarded to destination CE

👉 Important:
P routers never see customer IP addresses


10. PE–CE Routing Options

Common routing methods:

  • Static routing
  • OSPF
  • EIGRP
  • eBGP

Exam focus:

  • BGP is preferred for scalability
  • OSPF/EIGRP require special handling (domain separation)

11. Benefits of MPLS Layer 3 VPN (Exam View)

  • Scalable
  • Secure
  • Supports overlapping IP addresses
  • Centralized routing by provider
  • Efficient forwarding using MPLS labels

12. MPLS L3 VPN vs VRF-Lite (Exam Comparison)

FeatureMPLS L3 VPNVRF-Lite
MPLS usedYesNo
MP-BGPYesNo
Provider coreYesNo
ScalabilityVery highLimited
Use caseService providerEnterprise internal

13. Key Exam Takeaways (Very Important)

For ENARSI 300-410, remember:

  • MPLS L3 VPN = Provider-managed routed VPN
  • VRF = Separate routing table
  • RD = Uniqueness
  • RT = Route control
  • MP-BGP = VPN route exchange
  • Two MPLS labels are used
  • P routers do not know customer routes
  • CE routers are MPLS-unaware

14. One-Line Summary for Exam

MPLS Layer 3 VPN uses VRFs, MP-BGP, RDs, RTs, and MPLS labels to securely provide scalable routed VPN services over a shared provider backbone.

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