BGP Label Update: Carrier Support Carrier - RFC 3107 post was describing how BGP RFC 3107 help service provider to share the VPN routes across the boundaries without sharing the PE routes. BGP Label Update feature is mainly used during inter-AS communication so that the changes occurring in one network couldn't impact the other.
Now consider in case of LTE network, there are thousand of thousand of eNODEB with all IP connectivity. Telecom provider is using IGP+LDP within the single domain. In this case, all the routes of eNODEB will flood across the domain however which is not required. Even we can't perform the summarization on loopbacks to reduce the number of routes within single area. How the scalability of PE will work in this kind of network?
Probably, BGP-3107 based architecture can be utilized within single Service Provider domain also to carry PE reachability. BGP IPv4-label address-family sessions between PE and P routers. IGP+LDP still runs within areas but does not carry PE reachability across areas. Remote PE loopback is a BGP ipv4 labeled route in RIB and next-hop for BGP service prefix is a BGP 3107 route.