In my previous lessons I explained the basics of MPLS L3 VPNs and I explained in detail how to configure it. This time, we are going to configure MPLS VPN PE-CE with RIP as the routing protocol between the customer and service provider.

RIP is a simple routing protocol and easy to implement with MPLS VPN. Here’s the topology we will use:


This is the same topology that I used in my previous examples. Let’s see what the configuration is like…



We will start with the configuration of the service provider network, we’ll have to configure an IGP (OSPF) and LDP on the PE1, P and PE2 router. Let’s add some loopbacks that are required for LDP:

PE1(config)#interface loopback 0
PE1(config-if)#ip address
P(config)#interface loopback 0
P(config-if)#ip address
PE2(config)#interface loopback 0
PE2(config-if)#ip address

Now we can configure OSPF:

PE1(config)#router ospf 1
PE1(config-router)#network area 0
PE1(config-router)#network area 0
PE1(config-router)#mpls ldp autoconfig
P(config)#router ospf 1
P(config-router)#network area 0
P(config-router)#network area 0
P(config-router)#network area 0
P(config-router)#mpls ldp autoconfig
PE2(config)#router ospf 1
PE2(config-router)#network area 0
PE2(config-router)#network area 0
PE2(config-router)#mpls ldp autoconfig

This time I used the mpls ldp autoconfig command to automatically enable LDP for all OSPF enabled interfaces. Let’s do a quick check to see if LDP is enabled:

P#show mpls ldp neighbor | include Peer
    Peer LDP Ident:; Local LDP Ident
    Peer LDP Ident:; Local LDP Ident

Our P router in the middle has two neighbors so this is looking good. Just in case, let’s verify if there is connectivity between PE1 and PE2:

PE1#traceroute source loopback 0
Type escape sequence to abort.
Tracing the route to
VRF info: (vrf in name/id, vrf out name/id)
  1 [MPLS: Label 17 Exp 0] 0 msec 0 msec 4 msec
  2 0 msec 0 msec *

PE1 and PE2 are able to reach each other and you can see we are using label switching.

VRFs on the PE Routers

Our next step in the configuration is to configure the VRFs. I will use a VRF called “CUSTOMER”, the route distinguisher and route-target will be 1:1.

PE1 & PE2
(config)#ip vrf CUSTOMER
(config-vrf)#rd 1:1
(config-vrf)#route-target both 1:1

Don’t forget to add the interfaces facing the customer routers into the VRF:

PE1(config)#interface FastEthernet 0/0
PE1(config-if)#ip vrf forwarding CUSTOMER
PE1(config-if)#ip address
PE2(config)#interface FastEthernet 0/1
PE2(config-if)#ip vrf forwarding CUSTOMER
PE2(config-if)#ip address

Let’s check if the PE routers are able to ping the CE routers from the VRF:

PE1#ping vrf CUSTOMER
Type escape sequence to abort.
Sending 5, 100-byte ICMP Echos to, timeout is 2 seconds:
Success rate is 100 percent (5/5), round-trip min/avg/max = 1/2/4 ms
PE2#ping vrf CUSTOMER
Type escape sequence to abort.
Sending 5, 100-byte ICMP Echos to, timeout is 2 seconds:
Success rate is 100 percent (5/5), round-trip min/avg/max = 1/2/4 ms

So far so good…

IBGP between PE1 and PE2

Our two PE routers require iBGP to exchange the VPNv4 routes. Let’s configure this:

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Forum Replies

  1. Hi Zeeshan,

    In an MPLS PE-CE scenario, you can use IGPs or BGP. Even static routes are possible.


  2. Hi Rene.
    Will you please advise me how do I advertise loopback I/F of PE1 to CE1?
    I have added

    PE1(config)#router rip
    PE1(config-router)#address-family ipv4 vrf CUSTOMER
    PE1(config-router-af)#version 2
    PE1(config-router-af)#no auto-summary 
    and even
    **PE1(config-router-af)#redistribute connnected**

    It seems the PE1 are not advertise its loopback to CE1.

  3. Hello Shang

    This behaviour is normal. Not only that, it is actually desired. The whole purpose of the MPLS Layer 3 VPN is to be able to create a transparent MPLS VPN between the two CE routers as if they are directly connected to each other. You’ve configured the Loopback to participate in the RIP routing, but you’ve also configured the ip vrf forwarding CUSTOMER VRF on the customer facing Fa0/0 interface and the mpls ldp autoconfig on the network facing interface. This will cause all additional network interfaces to be “inside the VPN” and not visible to t

    ... Continue reading in our forum

  4. Hello lagapides
    Thank you for your kindly explaination.
    I also find some hint in the next few lessons.

  5. Hello Viral,

    You’ll need an IGP so that your IBGP routers know how to reach each other. Here is an example:

    ... Continue reading in our forum

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