MPLS VPN

MPLS VPN is a solution to solve duplicate customer address range in the provider routing table. By having this solution, a service provider will be able to provide a connectivity for several customers which are connected each other with privete IP(s).

Data plane on this solution is a bit different with MPLS unicast. The PE (provider edge) has another table called VRF (Virtual Routing and Forwarding). The PE also add two labels (instead of one label) into the header. The outer label is being used to deliver the packet to the next router, while the inner label is being used to identify which VRF is related to the packet.

One of the challange to implement VPN is overlapping IP address. This problem is solved by using RD (route distinguisher) by taking advantage of MP-BGP. The RD will add 64-bit RD to the 32-bit IP-v4  prefix. Then MPLS will your RT (route target) to decide which packet is correlated to which VRF.