Implementing Layer 3 VPNs over L2TPv3 Tunnels

Layer 3 VPNs can be implemented in conjunction with L2TPv3 tunnels. The solution lends itself to implementation where the SP does not implement MPLS transport mechanism in the core to forward packets. Implementation of L2TPv3 tunnels creates a tunnel network as an overlay to the IP backbone, which interconnects the PE routers to transport VPN traffic. The multipoint tunnel uses BGP to distribute VPNv4 information between PE routers. The advertised next hop in BGP VPNv4 triggers tunnel endpoint discovery. Dynamic L3 VPN implementation over multipoint L2TPv3 tunnels provides the ability for multiple service providers to cooperate and offer a joint VPN service with traffic tunneled directly from the ...

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