L3VPN Overview

L3VPN, or Layer 3 Virtual Private Network, is a type of MPLS VPN that operates on top of an IP/MPLS transport infrastructure. It allows customers to create secure and private layer 3(IP) connections over a shared infrastructure and provides seamless IP connectivity to the customer’s multiple sites.

The key aspects of L3VPN are:

  • IP-Based Routing: All the control plane communication in the L3VPN network is based on IP-based routing protocols, so there are dynamic updates, multihoming, fault detection, and optimal data routing.

  • Provider Edge (PE): The Layer 3 device at the edge of the service provider network is called Provider Edge.

  • Customer Edge (CE): The Layer 3 device at the edge of the customer network with its interface connected to the service provider is called the Customer Edge. Both PE and CE have IP connectivity between them, either through Routing Protocols or Static Routing. The PE device has a separate instance configured for each customer. An Instance is a virtual routing and forwarding table (VRF) along with customer-private routing protocols. The CE device is responsible for transferring all the routing information in the customer sites to the PE.

  • Encapsulation and Tunneling: L3VPN uses the MPLS data plane encapsulation to securely transfer data between two PE routers in the service provider network.

  • VPN Instances: Each customer has a separate instance (VPN routing and forwarding (VRF) ) in PE. This ensures that each customer’s data remains separate and maintains data privacy.

  • Security and Privacy: L3VPN, using the above techniques, such as Encapsulation, Tunneling, and VPN instances, provides isolation for each customer in the shared network.

  • Scalability and Flexibility: L3VPN supports different network deployments depending on customer requirements. Instances are deployed only on the Edges, so they can be easily scaled. Filtering based on Extended Communities Route targets provides flexibility at the policy level, so it is possible to create various VPN topologies, such as hub-and-spoke VPNs, etc.

L3VPN Overview

PE1 and PE2 are each configured with a BGP L3VPN instance connected to the customer edge devices (CEs). Both PE and CE have IP connectivity between them, either through Routing Protocols or Static Routing. Once PEs receive customer routes, they use Multi-Protocol BGP (MP-BGP) to exchange the routes between the PEs.

For example, when CE1 needs to transmit packets to CE2, then CE1 initiates a route lookup process to determine the nexthop for getting to CE2. This destination route is exchanged in advance between PEs and CEs through the configured routing protocol. Upon obtaining the routing destination via PEs, the CEs proceed to transmit the packet to PEs. After the PEs receive packets from the CEs, they add the VPN labels which are advertised by the neighboring PEs for the destination route, and send them to the peer PEs using the MPLS label-switched path transport (LSP). After the other PEs receive the packet via the MPLS LSP, they pop the VPN labels of the packets and perform an IP route lookup on the L3VPN instances, and forward the packets to the destination CE2.

Interprovider Layer 3 VPN options

Sometimes, a customer needs an L3 VPN between two locations where a given Service Provider (SP) does not have coverage. To interconnect these customers, Layer 3 VPNs can be deployed in three different ways: Option A, Option B, and Option C.

  • Option A: When dealing with another ISP, use eBGP, but place the BGP session within the customer’s VRF. Essentially, treat the other service provider as if they were just another customer CE. This approach requires each customer’s individual BGP and VRF configurations. However, it is ideal when you have no control over the other ISP’s network.

  • Option B: When setting up eBGP with the other ISP, make sure to use the global/default routing table. Each ASBR should advertise a unique label for every destination FEC in every VRF to the other ASBR. This process is similar to creating a label-switched path between the two ISPs.

  • Option C: Configure eBGP between the ASBRs again, but this time using two planes: 1) The VPN unicast plane for exchanging VPN routes and plane 2 uses BGP Labeled Unicast, which enables PEs in one ISP to establish a label-switched path to the loopbacks of the PEs in the other ISP.

Supported L3VPN Standards

RFC Number Description

RFC 4364

BGP/MPLS IP Virtual Private Networks (VPNs)

RFC and draft compliance are partial except as specified.

Supported Platforms

Not all features are necessarily supported on each hardware platform. Refer to the Platform Guide for the features and the sub-features that are or are not supported by each platform.