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We have replicated a client setup where L3 VPN inter-as option B was implemented and on top of that, they want to enable L2vpn services.
Before implementing they tested the l2vpn with ASBR as a PE, unfortunately, the l2vpn was not coming up, when configuring the l2vpn over option B with another device as PE (Not ASBR) the l2vpn started to work.
I have replicated the same issue and also I have a workaround for this, lab diagram is attached to the email.
In this setup ASBR2 is acting both ASBR and PE, between ASBRs there is a BGP LU session. The following were observed:
We are looking for a solution that would not involve LDP between ASBRs, is there any knob available that we are not aware of? Based on our observation the l2vpn on ASBR2 is looking into inet.3 to find a LSP to the remote PE, but if ASBR is also PE we have BGP-LU and there is no need to run LDP/RSVP. If there is no entry in inet.3 for ASBR1 lo0 l2vpn simply does not come up.
Thank you for looking into this!