EoIP does have a lot of overhead.
But VPLS tunnels are very efficient, and MPLS runs very well over an OSPF network. The tunnels dont fall apart on re-route. There wont be any speed decreases with VPLS tunnels.
I have a full MPLS cloud network, I have one router at each PoP, I bridge all the customer APs at a tower to a VPLS tunnel leaving a router back to my core router, so I have full layer2 to my core router from the customer. Then PPPoE on that! Magical I say.--
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