Multiprotocol label switching (MPLS) combines the performance and capabilities of Layer 2 (data link layer) switching with the proven scalability of Layer 3 (network layer) routing. MPLS enables service providers to meet the challenges of explosive growth in network utilization while providing the opportunity to differentiate services without sacrificing the existing network infrastructure. The MPLS architecture is flexible and can be employed in any combination of Layer 2 technologies. MPLS support is offered for all Layer 3 protocols, and scaling is possible well beyond that typically offered in today’s networks.

MPLS efficiently enables the delivery of IP services over an ATM switched network. MPLS supports the creation of different routes between a source and a destination on a purely router-based Internet backbone. By incorporating MPLS into their network architecture, service providers can save money, increase revenue and productivity, provide differentiated services, and gain competitive advantages.

Note	In the Cisco IOS XE Release 16.x, the ASR 1000 routers only support fragmentation of the MPLS packets from the IP to MPLS direction.

Label switching is a high-performance packet forwarding technology that integrates the performance and traffic management capabilities of data link layer (Layer 2) switching with the scalability, flexibility, and performance of network layer (Layer 3) routing.

In conventional Layer 3 forwarding mechanisms, as a packet traverses the network, each router extracts all the information relevant to forwarding the packet from the Layer 3 header. This information is then used as an index for a routing table lookup to determine the next hop for the packet.

In the most common case, the only relevant field in the header is the destination address field, but in some cases, other header fields might also be relevant. As a result, the header analysis must be done independently at each router through which the packet passes. In addition, a complicated table lookup must also be done at each router.

In label switching, the analysis of the Layer 3 header is done only once. The Layer 3 header is then mapped into a fixed length, unstructured value called a label .

Many different headers can map to the same label, as long as those headers always result in the same choice of next hop. In effect, a label represents a forwarding equivalence class --that is, a set of packets which, however different they may be, are indistinguishable by the forwarding function.

The initial choice of a label need not be based exclusively on the contents of the Layer 3 packet header; for example, forwarding decisions at subsequent hops can also be based on routing policy.

Once a label is assigned, a short label header is added at the front of the Layer 3 packet. This header is carried across the network as part of the packet. At subsequent hops through each MPLS router in the network, labels are swapped and forwarding decisions are made by means of MPLS forwarding table lookup for the label carried in the packet header. Hence, the packet header does not need to be reevaluated during packet transit through the network. Because the label is of fixed length and unstructured, the MPLS forwarding table lookup process is both straightforward and fast.

Each label switching router (LSR) in the network makes an independent, local decision to determine a label value to represent a forwarding equivalence class. This association is known as a label binding. Each LSR informs its neighbors of the label bindings it has made.

When a labeled packet is being sent from LSR A to the neighboring LSR B, the label value carried by the IP packet is the label value that LSR B assigned to represent the forwarding equivalence class of the packet. Thus, the label value changes as the IP packet traverses the network.

The awareness of label bindings by neighbouring routers is facilitated using the following protocols:

• Label Distribution Protocol (LDP) - Enables peer LSRs in an MPLS network to exchange label binding information for supporting hop-by-hop forwarding in an MPLS network.

• Tag Distribution Protocol (TDP) - Supports MPLS forwarding along normally routed paths.

• Resource Reservation Protocol (RSVP) - Supports MPLS traffic engineering.

• Border Gateway Protocol (BGP) - Supports MPLS virtual private networks (VPNs) .

MPLS provides the following major benefits to service provider networks:

Scalable support for Virtual Private Networks (VPNs)--MPLS enables VPN services to be supported in service provider networks, thereby greatly accelerating Internet growth.

The use of MPLS for VPNs provides an attractive alternative to the building of VPNs by means of either ATM or Frame Relay permanent virtual circuits (PVCs) or various forms of tunneling to interconnect routers at customer sites.

Unlike the PVC VPN model, the MPLS VPN model is highly scalable and can accommodate increasing numbers of sites and customers. The MPLS VPN model also supports “any-to-any” communication among VPN sites without requiring a full mesh of PVCs or the backhauling (suboptimal routing) of traffic across the service provider network. For each MPLS VPN user, the service provider’s network appears to function as a private IP backbone over which the user can reach other sites within the VPN organization, but not the sites of any other VPN organization.

From a user perspective, the MPLS VPN model enables network routing to be dramatically simplified. For example, rather than having to manage routing over a topologically complex virtual backbone composed of many PVCs, an MPLS VPN user can generally employ the service provider’s backbone as the default route in communicating with all of the other VPN sites.

Explicit routing capabilities (also called constraint-based routing or traffic engineering)--Explicit routing employs “constraint-based routing,” in which the path for a traffic flow is the shortest path that meets the resource requirements (constraints) of the traffic flow.

In MPLS traffic engineering, factors such as bandwidth requirements, media requirements, and the priority of one traffic flow versus another can be taken into account. These traffic engineering capabilities enable the administrator of a service provider network to

• Control traffic flow in the network

• Reduce congestion in the network

• Make best use of network resources

Thus, the network administrator can specify the amount of traffic expected to flow between various points in the network (thereby establishing a traffic matrix), while relying on the routing system to

• Calculate the best paths for network traffic

• Set up the explicit paths to carry the traffic

Support for IP routing on ATM switches (also called IP and ATM integration)--MPLS enables an ATM switch to perform virtually all of the functions of an IP router. This capability of an ATM switch stems from the fact that the MPLS forwarding paradigm, namely, label swapping, is exactly the same as the forwarding paradigm provided by ATM switch hardware.

The key difference between a conventional ATM switch and an ATM label switch is the control software used by the latter to establish its virtual channel identifier (VCI) table entries. An ATM label switch uses IP routing protocols and the Tag Distribution Protocol (TDP) to establish VCI table entries.

An ATM label switch can function as a conventional ATM switch. In this dual mode, the ATM switch resources (such as VCI space and bandwidth) are partitioned between the MPLS control plane and the ATM control plane. The MPLS control plane provides IP-based services, while the ATM control plane supports ATM-oriented functions, such as circuit emulation or PVC services.