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MPLS L3VPN — Basic Provider Network

A classic MPLS L3VPN topology with two PE routers, one P router, and two CE sites — the foundation of every service provider network.

The Prompt

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Build an MPLS L3VPN topology with 5 Cisco IOL routers. The provider core has PE1, P1, and PE2 in AS 65000 running OSPF area 0 as the IGP and LDP for label distribution. CE1 and CE2 are customer edge routers in customer VRF "CUSTOMER-A". CE1 connects to PE1 (eBGP, customer AS 65001), CE2 connects to PE2 (eBGP, customer AS 65002). The PE routers run MP-BGP VPNv4 to exchange customer routes through the core. Use loopbacks for MP-BGP peering between PE1 and PE2 (10.0.0.1 and 10.0.0.2). Customer LANs: CE1 advertises 192.168.1.0/24, CE2 advertises 192.168.2.0/24. Verify CE1 can reach CE2's LAN through the MPLS core, confirm VPN labels in the data path, and observe MP-BGP route exchange.

What You'll Build

  • 5-router service provider topology (2 PE + 1 P + 2 CE)
  • OSPF + LDP in the provider core
  • MP-BGP VPNv4 between PE routers
  • Customer VRF isolation
  • End-to-end VPN service across MPLS

Concepts Demonstrated

  • The role of PE, P, and CE routers in an MPLS network
  • IGP + LDP combination (or how SR replaces this — see Segment Routing MPLS)
  • Route Distinguisher (RD) and Route Target (RT) in MP-BGP VPNv4
  • Two-label stack: outer (transport) + inner (VPN)
  • VRF separation and customer multi-tenancy

Vendors Used

  • Cisco IOL (all 5 routers)

Difficulty

⭐⭐ Intermediate

Variations to Try

  • "Add a second customer VRF (CUSTOMER-B) with overlapping IP ranges to demonstrate VRF isolation"
  • "Add a route reflector for VPNv4 to scale beyond two PEs"
  • "Replace LDP with Segment Routing MPLS"
  • "Add an Inter-AS L3VPN scenario (Option B) with a second AS"

Related Resources

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