Introduction

There are three modes of allocating VPN labels: per-prefix, per-vrf and per-ce.

Allocation Modes

Default mode is per-prefix. A VPN label is generated per each VPNv4 prefix. For more info see MPLS-VPN-Per-Prefix-Label.
Per-vrf mode allocates one VPN label for all prefixes within the same vrf. For more info see MPLS-VPN-Per-VRF-Label
Per-ce mode allocates one VPN label for each BGP next-hop (i.e. CE router). For more info see MPLS-VPN-Per-CE-Label

Additionally the IOS-XR platforms have a selection process to define which prefixes should use what specific allocation mode base on a RPL.

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