I have seen lot of guys which say that next-hop-self feature in BGP is used for the E-BGP peering. But with the given case study all of you come to know that It is very practical in I-BGP session in SP domain usually when the customers use static routes.

This case study is divided into two parts:-
a)IP-VPN
b)MPLS-VPN
IP-VPN
In SP cloud, 4*7200 routers are configured as per the diagram. Every router is having IPV4 peering with RR router. OSPF is using for IGP.CE – PE is configured with static routing. All wan links are /30 and loopback addresses are /32.