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MPLS and Next-Generation Networks: Foundations for NGN and Enterprise Virtualization by Azhar Sayeed, Monique Morrow

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Chapter 5. Layer 3 VPNs

In this chapter, we discuss another important application of MPLS, which was mentioned in Chapter 4, “Layer 2 VPNs”—namely, Layer 3 VPNs. This is also known as Border Gateway Protocol (BGP) MPLS VPNs. Layer 3 VPNs (commonly referred as RFC 2547 VPNs; the new RFC is RFC 4364) was one of the first applications of MPLS. This is the most common MPLS application and the most widely deployed network-based IP VPN technology. This chapter starts with a technology overview and then discusses how Layer 3 VPNs can be offered as a service. We further discuss value-added services and how these services can be bundled with Layer 3 VPNs for additional revenue for service providers.

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