I. Introduction to carrier's carrier
It
 is possible that a customer of the MPLS L3VPN service provider is also a
 service provider. In this case, the MPLS L3VPN service provider is 
called the provider carrier or the Level 1 carrier, while the customer 
is called the customer carrier or the Level 2 carrier. This networking 
model is referred to as carrier’s carrier. In this model, the Level 2 
service provider serves as a CE of the Level 1 service provider.
For
 good scalability, the Level 1 carrier does not inject the external 
routes of a Level 2 carrier; it only injects routes for switching 
packets from different sites of the Level 2 carrier. The external routes
 maintained by a Level 2 carrier are exchanged through BGP sessions 
established between related routes of the Level 2 carrier. This can 
greatly reduce the number of routes maintained by the Level 1 carrier 
network.
II. Implementation of carrier’s carrier
Compared
 with the common MPLS L3VPN, the carrier’s carrier is different because 
of the way in which a CE of a Level 1 carrier, that is, a Level 2 
carrier, accesses a PE of the Level 1 carrier:
- If the PE and the CE are in a same AS, you need to configure IGP and LDP between them.
 - If the PE and the CE are not in the same AS, you need to configure MP-EBGP to label the routes exchanged between them.
 
In
 either case, you need to enable MPLS on the CE of the Level 1 carrier. 
Moreover, the CE holds the VPN routes of the Level 2 carrier, but it 
does not advertise the routes to the PE of the Level 1 carrier; it only 
exchanges the routes with other PEs of the Level 2 carrier.
A Level 2 carrier can be an ordinary ISP or an MPLS L3VPN service provider.
When
 the Level 2 carrier is an ordinary ISP, its PEs run IGP to communicate 
with the CEs, rather than MPLS.PE 3 and PE 4 exchange VPN routes of the 
Level 2 carrier through IBGP sessions.


Scenario where the Level 2 carrier is an ISP
When
 the Level 2 carrier is an MPLS L3VPN service provider, its PEs need to 
run IGP and LDP to communicate with CEs.PE 3 and PE 4 exchange VPN 
routes of the Level 2 carrier through MP-IBGP sessions.


Scenario where the Level 2 carrier is an MPLS L3VPN service provide
Caution:
If there are equal cost routes between the Level 1 
carrier and the Level 2 carrier, you are recommended to establish equal 
cost LSPs between them accordingly.
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