RFC2547b is an extension to the original RFC 2547, which details a method of distributing routing information and forwarding data to provide a Layer 3 Virtual Private Network (VPN) service to end customers.
Each Virtual Private Routed Network (VPRN) consists of a set of customer sites connected to one or more PE routers. Each associated PE router maintains a separate IP forwarding table for each VPRN. Additionally, the PE routers exchange the routing information configured or learned from all customer sites via MP-BGP peering. Each route exchanged via the MP-BGP protocol includes a Route Distinguisher (RD), which identifies the VPRN association.
The service provider uses BGP to exchange the routes of a particular VPN among the PE routers that are attached to that VPN. This is done in a way which ensures that routes from different VPNs remain distinct and separate, even if two VPNs have an overlapping address space. The PE routers distribute routes from other CE routers in that VPN to the CE routers in a particular VPN. Because the CE routers do not peer with each other, there is no overlay visible to the VPN routing algorithm.
When BGP distributes a VPN route, it also distributes an MPLS label for that route. On a SR-Series, the label distributed with a VPN route depends on the configured label-mode of the VPRN that is originating the route.
Before a customer data packet travels across the service provider's backbone, it is encapsulated with the MPLS label that corresponds, in the customer's VPN, to the route which best matches the packet's destination address. The MPLS packet is further encapsulated with either another MPLS label header, so that it gets tunneled across the backbone to the correct PE router. Each route exchanged by the MP-BGP protocol includes a route distinguisher (RD), which identifies the VPRN association. Therefore the backbone core routers do not need to know the VPN routes. The following figure shows a VPRN network diagram example.