Inter-AS VPN Option-B Overview

Inter-AS Option B is a more scalable solution compared to Option A. It does not require any VRFs on the ASBRs, it uses VPNv4 eBGP to exchange VPNv4 updates.
Single interface to connect the ASBRs.
Packets are sent labelled between the ASBRs.
No need for VRFs on the ASBR.
ASBRs must be directly connected.
Scales better than Option A.

ASBR BGP label allocation mode uses per-prefix label allocation, and per-VRFClosed Virtual Routing and Forwarding label allocation cannot be achieved in ASBRs (VPNv4 and VPNv6).

Topology

Figure 31. InterAS-VPN Option-B