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Regarding the following statement:
GÇ£It's entirely reasonable to ask that the L2 CPE switch is IP manageable and that the service provider at least be able to ping it for continuity checks.GÇ¥
This assumes the SP has IP management connectivity to the customer CPE. How is this provided? The SP must either have a connection into the customers VPN, or use a separate management VLAN. Both of these have their own problems, e.g. filtering of customer traffic and management of VLAN space.
Presuming that the customer also needs to manage their own CPE device and it is therefore connected to the customer management LAN, the SP may need to filter out customer management traffic from other devices in the customers network. The SPs management connection to the customers CPE also leads to security risks (for the customer and the SP). An SP managed L3 solution is open to the same risks, however, these security risks are not associated with other L2 access technologies like Frame Relay and ATM, as these circuits are managed at L2 (where the SP wants to provide L2 connectivity only). The whole problem stems from the fact that Ethernet does not have any inherent management or OAM functionality, and must therefore GÇÿborrowGÇÖ these from L3 (IP).
The above statement also assumes that the SP is providing a managed service for that particular customer. What if the SP is a wholesale provider and just wants to provide an Ethernet GÇÿwireGÇÖ for the customer to plug their CPE into? I think the answer here is that Ethernet cannot be used in this way. Just like a Frame Relay circuit has an NTE/NTU, I think an Ethernet circuit needs a line termination device that is GÇÿownedGÇÖ by the SP. The customer can then plug their CPE into the SP termination device (which could be a cheap L2 switch). This gets round the problems associated with the customer management connection as only the SP has a management connection to the termination device.
Some customers may be OK about giving an SP management connectivity to a device in their network, but there will also be many that wonGÇÖt. Especially those who simply want a replacement for their existing ATM/FR circuits.
SY2M.