MPLS VPN
Presented by :
Md. Shafiqur Rahman
Divisional Engineer (A & C)
Moghbazar, Dhaka-1217
MPLS VPN
Multi-Protocol Label Switching (MPLS) :
Provides a mechanism for forwarding packets for
any network protocol.
Unlike
traditional IP, MPLS flows are connectionoriented and packets are routed along pre-configured
Label Switched Paths (LSPs).
MPLS
directs and carries data from one network
node to the next
MPLS
is operable between the Data Link Layer and
the Network Layer.
MPLS VPN: (P2P VPN)
Virtual Private Network (VPN) :
A Data network that utilizes a portion of a shared public
network to extend a customer’s private network.
VPN use cryptographic tunnelling protocols to provide high
level security;
 Important for any organizations that have many offices at
different locations. Why?

To expand their networking capabilities

To secure their traffic

To reduce their cost
MPLS VPN: (P2P VPN)
VPN Components :
Customer network

CE Router
Provider network

PE Router

P Router
Layer 2 MPLS VPN
How Does it Work?
MPLS-based
Layer 2 VPNs prepends a label to a Layer 2
PDU and then forwarding the packet across the MPLS
backbone.
 Provider (P) routers not be aware of the VPNs. They will
continue to forward packets over pre-established lSPs.
 CE Routers will operate without any knowledge of the
existence of MPLS VPNs.
 PE Routers do not participate in the routing algorithms of
the end-users, and there no requirements for the construction
of VPN routing and forwarding tables (VRFs)
Contd…
MPLS VPN
How Does it Work?
 A different label
is used for each hop, and it is chosen by
the router or switch performing the forwarding operation.
Ingress routers at the edge of the MPLS network classify
each packet potentially using a range of attributes, not just
the packet's destination ddress, to determine which LSP to
use.
Inside the network, the MPLS routers use only the LSP
labels to forward the packet to the egress router.
Contd…...
MPLS VPN
How Does it Work?
 An LSP acts as a tunnel carrying multiple VCs
 VCs are uni-directional, for bi-directional communication, a
pair of VCs – one in each direction –is needed.
Tunnel LSPs between the PE routers could be created using any
protocol like RSVP/TE or LDP
 PE routers exchange the VC labels via LDP
The PE router encapsulates the subscriber layer- 2 frame and
attaches two labels ( top & inner)
 The receiving PE router pops the tunnel label and use the inner
label to deliver the packet to the correct end-user.
MPLS VPN
How Does it Work?
 Customer frames are switched based on their destination
MAC address.
VPN is established by creating a full mesh of VCs
between the PEs facing the sites that make the VPN.
 A PE router maintains a separate layer-2 forwarding
table, Virtual Forwarding Instance (VFI), for each VPN that
it carries.
 A PE router learns MAC addresses related only to the
VPNs that it carries.
 A P router does not learn any MAC addtreeses, they just
perform label switching.
LSR (Label Switched Router) A uses the
destination IP address on each packet to select
the LSP which determines the next hop and
initial label for each packet (21 and 17).
When LSR B receives the packets, it uses these
labels to identify the LSPs, from which it
determines the next hops (LSRs D and C) and
labels (47 and 11).
The egress routers (LSRs D and C) strip off the
final label and route the packet out of the
network.
P2P VPN Clients
Existing Clients
 DGFI
 BDCOM Online Limited
 Drik Alokchitra Granthagar Ltd
 Aamra Networks Limited (30 Mbps)
 Always on Network (BD) Ltd
 Department of Immigration and Passport (155 Mbps)
Potential Customers:
o
Govt. Organizations, Banks, NGOs, Insurance
Companies,
Educational Institutions, Groups of
Companies, Police, RAB, ARMY, Chain shop,s
Hospitals, Pharmaceuitical companies
P2P VPN Service
Limitations:

Access Network

Work Force

Operational Engineers

Coordination among different wings

Weak marketing

Slow decision making process

Not less than 2 Mbps
P2P VPN Service
Recommendation:






Immediate deployment of OFC as access network
Developing skilled operational engineers more in
numbers
Development of Field lvevl Work Force in all
service areas of BTCL
Prompt Coordination among different wings
Development of partnerships with third parties
for ensuring yes to all and making decisions right
the very moment
Provisioning for less than 2 Mbps
Why P2P VPN Saleable?
Dhaka- CTG:
2 MBPS DDN Data Connectivty Cost:

OTC= Tk. 11,000, YRC= TK. 11,55,000
2 Mbps P2P VPN Data Connectivity Cost:

OTC=Tk. 15,000, YRC= TK2,55,000 ( 22% of DDN
Cost)
PoP is
almost everywhere around the clients.
P2P VPN Charge Calculations
Components of Charges:
NRC (OTC): Non-recurring Charging

Registration Charge: TK. 5,000

Installation Charges:
E1 or 2 Mbps: TK. 10,000
DS3
: TK. 70,000
STM-1
: TK. 1,40,000
4xSTM-1
: TK. 4,00,000
STM-4
: TK. 3,00,000 (x2.5)
STM-16 : TK. 10.00,000 (x 9)
STM-64 : TK. 20,00,000 (x18)
Price Multiplication Factor:
1E1-3E1: 1; 4E1-20E1: 0.7, 21E1-41E1: 0,42;
42E1-62E1:0,3, 63E1/STM1: 0.17
P2P VPN Charges
Components of Charges:
MRC: Monthly Recurring Charging ( Based on E1 Capacity: 30%
discount for VPN)
Row
Slab in Km
Monthly
Charge
Tk./E1/Km
Comment
1
0-25
-
Tk. 4,000
(Fixed)/Month
2
26-50
165
Cumulative
3
51-100
140
Cumulative
4
101-200
105
Cumulative
5
201-300
63
Cumulative
6
301-
21
Cumulative
P2P VPN Charges
Components of Charges:
Discounting Parties:
Type of Subscriber
Discount
IIG Operator/NIX Operator
65%
Call centre/ Software Exports / BPO/ Medical
Transcription Service/ IT Enabled Service Provider/
Public Educational Institutions/ Internet Service
Provider
60%
Government/ Semi-Government/ Autonomous/
Corporations/Statutory Body/ Govt. Company
30%
PSTN/PLMN/ITC Operator/ Non Govt. Bank/ Private
Educational Institutions
10%
THANK YOU