Introduction to Layer 2 VPNs

Layer 2 VPNs were originally implemented using Layer 2 technologies like Frame Relay and ATM. However, there has been a considerable shift in technology; service provider (SP) networks are transitioning from circuit-switched networks to packet-switched networks. This shift is primarily due to increased revenue generation opportunities and improved management of current network resources. Overall, Layer 2 VPNs help reduce the cost for the provider because the cost of managing separate networks (TDM, FR, ATM, IP) is much higher from both a CAPEX and OPEX perspective than managing one larger aggregate network.

SPs can support both Layer 2 VPNs and Layer 3 MPLS VPNs over a single infrastructure because MPLS-enabled networks ...

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