Layer 2 MPLS VPN

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A Layer 2 MPLS VPN is a term in computer networking. It is a method that Internet service providers use to segregate their network for their customers, to allow them to transmit data over an IP network. This is often sold as a service to businesses.

Layer 2 VPNs are a type of Virtual Private Network (VPN) that uses MPLS labels to transport data. The communication occurs between routers that are known as Provider Edge routers (PE routers), as they sit on the edge of the provider's network, next to the customer's network.

Internet providers who have an existing Layer 2 network (such as ATM or Frame Relay) may choose to use these VPNs instead of the other common MPLS VPN, Layer 3. There is no one IETF standard for Layer 2 MPLS VPNs. Instead, two methodologies may be used. Both methods use a standard MPLS header to encapsulate data. However, they differ in their signaling protocols.