Hi Dande,
Indeed, as long as you don't use any summarization you still receive the /32
loopback address through OSPF areas, however the reason to separate an OSPF
domain is to get control over your routes and being able to summarize in the
perfect spots. Therefore you barely see GOOD Service Provider networks
having a separation in areas. You almost always have one big OSPF area 0 or
IS-IS level-2 network, which is also very good for implementing MPLS Traffic
Engineering.
But to answer your question, indeed you still receive /32 networks when you
don't implement any kind of summarization.

About  your second question, it's not 100% required to have /32 loopback
networks advertised to have an LSP, still it's a very strongly recommended
best practice. When you are using MPLS VPNs, the MPLS forwarding of VPN
routes is done by looking up the label for the BGP next-hop, this is done on
the IP address, so you will have the best control and are certain that the
traffic is perfectly label switched when this label is based on a /32 prefix
instead of an entire /24. When you don't use peerings on loopback addresses
you run into problems with Penultimate Hop Popping as the label stack is
removed 1 hop too early. You really need to receive labeled packets on a PE
router to make a decision in which routing table the traffic should be
looked up and forwarded.

Also with the default behavior of OSPF, when you use /24 networks to
configure a loopback, you run into problems because OSPF advertises them as
/32 and then LDP on the PE router advertises a label for the /24 prefix, but
the upstream router expects a label for a /32 prefix, so it get's discarded
and the LSP is broken.

I hope I answered your question with this :-)


--

Regards,

Rick Mur
CCIE2 #21946 (R&S / Service Provider)
Sr. Support Engineer – IPexpert, Inc.
URL: http://www.IPexpert.com


On Fri, Sep 25, 2009 at 10:35 AM, Dande Rajasekhar (drajasek) <
[email protected]> wrote:

>  Guys,
>
>
>
>     What does that mean by redistributing PE loopbacks into all
> areas.Doesnt loopback/32 flow across ospf areas if we don’t use area range
> at ABR.Also why do we need /32 loopback address for setting up LSP?
>
>
>
>
>
> From RFC 5328:
>
>
>
> IGP route leaking consists of redistributing all specific PE loopback
>
>    addresses across area boundaries.  As a result, LDP finds in the RIB
>
>    an exact match for its FEC and sets up the LSP.  As a consequence,
>
>    the potential benefits that a multi-area domain may yield are
>
>    significantly diminished since a lot of addresses have to be
>
>    redistributed by ABRs, and the number of IP entries in the IGP Link
>
>    State Database (LSDB), RIB, and Forwarding Information Base (FIB)
>
>    maintained by every LSR of the domain (whatever the area/level it
>
>    belongs to) cannot be minimized.
>
>
>
>
>
>         Thanks & Regards,
>
> *  Rajasekhar Dande*
> *  Software Engineer*
> *  ERBU 7600 India**
> *
>   [email protected]
>   Phone: +91 80 4426 1143**
>
>   Cisco home page <http://www.cisco.com/>
>
> [image: http://www.cisco.com/swa/i/logo.gif]**
>
> *    Cisco Systems, Inc.*
>
>
>
>
>
> _______________________________________________
> For more information regarding industry leading CCIE Lab training, please
> visit www.ipexpert.com
>
>
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