Quick Answer
The answer is MPLS Layer 3 VPN (BGP/MPLS IP VPN) because it uses Virtual Routing and Forwarding (VRF) instances to maintain completely separate routing tables per customer, which is the core mechanism that allows overlapping IP addresses across different VPNs without conflict. On the Cisco SPCOR 350-501 exam, this concept tests your understanding of how service providers isolate customer traffic at Layer 3; a common trap is confusing this with VPLS (a Layer 2 solution) or AToM (a pseudowire technology), both of which lack per-VPN routing tables. Remember that VRFs are the key—they create logical router partitions, so each customer sees their own unique routing domain even if they use the same IP space. A quick memory tip: “VRF = Very Separate Routing for overlapping IPs.”
This 350-501 practice question tests your understanding of networking. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
Which MPLS VPN technology allows a service provider to offer overlapping IP addresses to different customers while using a single routing table per VPN?
Any Transport over MPLS (AToM)
Why wrong: AToM is for point-to-point layer 2 circuits.
VPLS
Why wrong: VPLS is a layer 2 VPN service.
MPLS Traffic Engineering (TE)
Why wrong: TE is for optimizing traffic paths.
MPLS Layer 3 VPN (BGP/MPLS IP VPN)
Uses VRFs to isolate routing per VPN.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
MPLS Layer 3 VPN (BGP/MPLS IP VPN)
Option B is correct: MPLS Layer 3 VPN (BGP/MPLS IP VPN) uses VRFs to provide separate routing tables per VPN, allowing overlapping addresses. Option A (VPLS) is layer 2; Option C (AToM) is pseudowire; Option D (MPLS TE) is traffic engineering.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Any Transport over MPLS (AToM)
Why it's wrong here
AToM is for point-to-point layer 2 circuits.
VPLS
Why it's wrong here
VPLS is a layer 2 VPN service.
MPLS Traffic Engineering (TE)
Why it's wrong here
TE is for optimizing traffic paths.
MPLS Layer 3 VPN (BGP/MPLS IP VPN)
Why this is correct
Uses VRFs to isolate routing per VPN.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A practitioner preparing for the 350-501 exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
Identify which 350-501 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
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FAQ
Networking — This question tests Networking — Read the scenario before looking for a memorised answer..
The correct answer is: MPLS Layer 3 VPN (BGP/MPLS IP VPN) — Option B is correct: MPLS Layer 3 VPN (BGP/MPLS IP VPN) uses VRFs to provide separate routing tables per VPN, allowing overlapping addresses. Option A (VPLS) is layer 2; Option C (AToM) is pseudowire; Option D (MPLS TE) is traffic engineering.
Identify which 350-501 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 24, 2026
This 350-501 practice question is part of Courseiva's free Cisco certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the 350-501 exam.
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