This talk describes how MPLS Layer 2 VPNs can be used in the transport part of an access network for providing IP services such as Layer 3 VPNs. Paradigms for internetworking a MPLS layer 2 transport network with an IP services network are described.

A starting point for such internetworking is a clear separation between the transport and services part of the network. However this wastes network resources at the last hop between the transport and the services network. We call this 'book-ending'.

The talk describes a new paradigm for eliminating book-ending. In this model a MPLS Pseudo Wire terminates on a PE providing IP services. As a result the last hop between the transport and the services network is eliminated. Hence we extend the traditional notion of a Pseudo Wire where its used only for providing point to point connectivity. This also makes the edge PE media agnostic and facilitates layer 2 internetworking.

We describe the mechanisms and extensions needed for this model. Various applications are discussed. One of them is terminating IP on a MPLS Pseudo Wire to provide a Layer 3 VPN service.