The NETWORK command in the Router BGP configuration mode is to inject local
internal routes learned via an (IGP) Interior Gateway Protocal Routing
protocal i.e. OSPF,EIGRP...   into its BGP routing table. Because IBGP
connections do not need to be directly connected and needs an IGP to get to
its IBGP neighbor.

So in this case the network command is used by IBGP to get around  it's own
autonomous network.

Your EBGP route is learned staticly via the NEIGHBOR x.x.x.x REMOTE-AS
(number)command. Remember EBGP neighbors MUST share a same subnet i.e.
directly connected. So all EBGP routes will be pointing to the remote-as
directly connected router as its learned default gateway.

Hope this helps.

Andrew


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