
It is important to know what a PE router (Provider Edge Router) is and what it does. A PE router helps connect your business or company network with the internet. It also manages the exchange of data between the two networks and helps manage traffic accordingly.
If you are unsure, what a PE router is, this article will help explain what it means and how it works on the internet!
Provider Edge
PE router is a router between two areas managed by another network provider. The term PE router refers to software equipped with a variety of protocols and functions. It provides an interface between a provider's network and a customer's network, using Border Gateway Protocol (BGP) to exchange routing information between PE routers.
The term PE router refers to equipment that can support a wide variety of routing protocols, including:
- BGP (Border Gateway Protocol)
- OSPF (Open Shortest Path First)
- Multi-Protocol Label Switching
Border Gateway Protocol
Border Gateway Protocol (BGP) is a gateway protocol that allows the internet to communicate routing information across autonomous systems (AS). Peering is made feasible via BGP. Without it, networks would be unable to transmit and receive data from one another.
OSPF
Open Shortest Path First or OSPF is an open standard routing protocol. OSPF routers communicate through the exchange of Link-State Advertisements (LSA). The PE router runs OSPF on its external interfaces to other PE routers or CPEs. PE routers share routing information.
Multiprotocol Label Switching (MPLS)
MPLS is a networking technology that routes data between network nodes using short path labels rather than long network addresses, thus eliminating complicated routing table lookups.
PE MPLS enables routers to forward packets at high speeds inside and across provider networks by substituting two new kinds of router forwarding: "label switch" and "penultimate hop popping."
How to Configure PE Routers?
When configuring PE Routers in your network infrastructure, there are a few things you should keep in mind:
- Firstly, ensure that all PE routers have different IP addresses to be distinguished from one another.
- Secondly (and most importantly), make sure to configure the PE routers with BGP routing protocols by running commands on them before applying configuration changes!
Basic MPLS PE Router Configuration
Problem:
You want to link your MPLS core to a client network by configuring a Provider Edge (PE) router.
Solution:
To set up a PE router, you must connect to the MPLS core and one or more client networks. Furthermore, to transmit customer VRF routing information to other PE routers, MP-BGP must be configured:
PE ROuter configuration |
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Router-PE1#configure terminal |
Enter configuration commands, one per line. End with CNTL/Z. |
Router-PE1(config)#ip cef |
Router-PE1(config)#mpls ip |
Router-PE1(config)#interface Serial0/0 |
Router-PE1(config-if)#description Connection to Router-P1 |
Router-PE1(config-if)#ip address 10.1.1.13 255.255.255.252 |
Router-PE1(config-if)#mpls ip |
Router-PE1(config-if)#exit |
Router-PE1(config)#interface Loopback0 |
Router-PE1(config-if)#ip address 10.0.0.2 255.255.255.255 |
Router-PE1(config-if)#exit |
Router-PE1(config)#router ospf 99 |
Router-PE1(config-router)#router-id 10.0.0.2 |
Router-PE1(config-router)#network 10.0.0.0 0.255.255.255 area 0 |
Router-PE1(config-router)#exit |
Router-PE1(config)#ip vrf NetworkA |
Router-PE1(config-vrf)#rd 100:1 |
Router-PE1(config-vrf)#route-target export 100:1 |
Router-PE1(config-vrf)#route-target import 100:1 |
Router-PE1(config-vrf)#exit |
Router-PE1(config)#ip vrf NetworkB |
Router-PE1(config-vrf)#rd 100:2 |
Router-PE1(config-vrf)#route-target export 100:2 |
Router-PE1(config-vrf)#route-target import 100:2 |
Router-PE1(config-vrf)#exit |
Router-PE1(config)#interface Ethernet0/0 |
Router-PE1(config-if)#description connection to customer ... |
Basic BGP Configuration

Topology - Image by 9tut
First, we must set up the following interfaces on two routers:
r1 configuration | R2 CONFIGURATION |
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R1(config)#interface fastethernet0/0 | R2(config)#interface fastethernet0/0 |
R1(config-if)#ip address 11.0.0.1 255.255.255.0 | R2(config-if)#ip address 11.0.0.2 255.255.255.0 |
R1(config-if)#no shutdown | R2(config-if)#no shutdown |
R1(config-if)#interface loopback 0 | R2(config-if)#interface loopback 0 |
R1(config-if)#interface loopback 0 | R2(config-if)#ip address 2.2.2.2 255.255.255.0 |
So far, we've just set up interfaces fa0/0 and loopback0 on both routers. Following that, we will set the BGP configuration section on R1.
BGP configuration |
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R1(config)#router bgp 1 |
R1(config-router)#neighbor 11.0.0.2 remote-as 2 |
The setup is extremely straightforward, with just two lines on R1. BGP setup starts with a typical command in the first line: the router BGP command, where AS number is the BGP AS number used by that router (same as EIGRP, OSPF configuration).
The following command specifies the neighbor's IP address. BGP, unlike OSPF or EIGRP, cannot find its neighbors automatically and must be explicitly declared. We must also know how to disclose the neighbor's BGP AS number.
In this instance, R1 wishes to create a BGP neighbor connection with R2 (in BGP AS 2), so it selects an interface on R2 (Fa0/0: 11.0.0.2) and specifies that R2 is in BGP AS 2 with the command "neighbor 11.0.0.2 remote-as 2 ". R2 will do the same for R1 to establish a BGP neighbor connection.
Who can Configure a PE Router?

If you think that only IT can configure the PE router, you are wrong. Any of the following can configure PE Router:
- Network engineers who deploy and maintain routers for their organization's internet service provider (ISP)
- System administrators on a company's corporate network
- You, if you have been delegated to do so by your IT administrator.
Benefits of Using PE Router
- PE routers are used in a service provider environment.
- PEs can be configured for many different types of routing and forwarding, depending on the customer's needs.
- PE routers have several IP addresses that allow them to function as an access router into your network. PE router can also be a border router between networks with different interior protocols running them.
- PE routers allow routing protocols such as EIGRP, OSPF, and RIP to run on it.
- PE routers offer breakneck speeds, which make them perfect for data-intensive applications like video streaming and Voice over IP (VoIP) services where bandwidth consumption must not exceed available resources at all times during peak load periods.
- PE routers work with VPNs for customers or employees to connect securely through their networks.
Drawbacks of PE Router
- Its size can be large and hefty if you want something to pack in your suitcase.
- It cannot do inter-AS routing.
- It can be expensive, and from a security point of view, it may not offer the protection you need for your network environment.
- A PE router is outside the firewall perimeter and must use other means to protect itself, such as IPSec or GRE tunnels which could cause performance issues.
- PE routers are often used to connect branch offices, remote and home offices with HQs in different cities or countries.
- The PE router acts as a gateway for the network traffic between networks behind it when they need to communicate.
Why Might You Need PE Router in Your Business?
Every business these days has to be online so that they can stay on top of the competition. But with more and more people coming up in this day and age, it's difficult for companies without a strong internet presence to succeed.
This is where PE routers come into play. Since they form an interface between your company's network or website and other networks such as providers worldwide. Remember, you're connected globally!
Their job is essential because packets are delivered to your company before arriving at their destination! You need to think about PE router technology if you are serious about business connectivity and local area networks.
PE routers serve many purposes and have significant implications on how well an organization's network infrastructure works! Your business needs to be aware of the presence and importance of a PE router.
They act as an interface between your company's network and the outside world - using BGP routing information exchange protocol for communication purposes.
Benefits of PE Router at Home
- PE routers can increase productivity, as well as more excellent reliability.
- PE routers can protect your data and devices with personal firewalls to prevent unwanted visitors from accessing them.
- It also contains unauthorized access from the outside, which can be very helpful in today's world as hacking is more common than ever before.
- PE routers can provide Internet services for all the devices in your household.
- PE routers can offer better quality streaming for video content such as YouTube or Netflix, allowing you to enjoy uninterrupted viewing without buffering pauses!
Things You Need To Know When Buying a PE Router
If you are a person who is looking for reasons to buy their router, this may be a perfect read. We will discuss some of the benefits that come with owning your very own internet connection at home instead of relying on someone else's Wi-Fi signal or cable service.
The PE router has many modes to choose from, which can be overwhelming at first. To make the decision easier for you, we have broken down what each mode does to be a little less confusing and simpler.
- Modes Explained-Router Mode - This determines whether or not your wireless connection will broadcast its SSID (Service Set ID).
- Bridge Mode – If you are using an Ethernet cable, this means all of the devices connected on one side of the bridge get internet access while those in other rooms don't.
- Client Router Mode - Clients connect through Wi-Fi with their network name but share bandwidth with others who may need help accessing theirs too.
Suggested PE Routers
Conclusion
After reading this article, you should have a better understanding of PE router and how it works. You may have learned the significance of PE routers and we hope that this article has helped to answer some questions and provide information about what these devices do for your network.