Im designing small scale Service Provider Network with MPLS in the core. Been a customer to other telco, when we subscribed a Metro-E based circuit, they will install a Metro-Ethernet Switch called U-PE . I was not sure what been configured in the unit, but it was mainly for OAM purpose, to check Service Provider connectivity until Last Mile(To Customer Premise)..
Upon google, find out that UPE used in multiple purpose.
1) You can use UPE for Hierarchical MPLS VPN, where you extend MPLS until UPE.
2) Use in purely layer 2 mode for OAM purpose. No MPLS involve between PE to UPE.
I plan to use the second method where only Layer 2 connection involve. But not too sure what should be configured on the PE and UPE. Note that PE interface should have IP configured for CE to establish Layer 3 connection to us(For any L3VPN service) or Interface Xconnect without IP (for L2VPN Service) . But we still need another ip range for UPE management. Need help from expert. Attached is the Proposed Network Diagram.
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