By configuring multiple LDP routing instances, you can use LDP to advertise labels in a carrier-of-carriers VPN from a service provider provider edge (PE) router to a customer carrier customer edge (CE) router. This is especially useful when the carrier customer is a basic Internet service provider (ISP) and wants to restrict full Internet routes to its PE routers. By using LDP instead of BGP, the carrier customer shields its other internal routers from the Internet. Multiple-instance LDP is also useful when a carrier customer wants to provide Layer 2 or Layer 3 VPN services to its customers.
For an example of how to configure multiple LDP routing instances for carrier-of-carriers VPNs, see the JUNOS Feature Guide.