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This question is somewhat out of scope wrt EFM, but the answer is yes, the EFM OAMPDU flow must be terminated at the Provider Edge. Otherwise it would flow through the provider's SONET network and get mixed in with a separate EFM OAMPDU flow at the far end. Note that you have the terms ONU / OLT reversed.
This "filter function" is being defined in the ITU-T SG15 / Q.12 work in draft G.ethna (was G.etna) and in the OIF UNI v2.
The PE-PE, or SONET portion is not an EFM link, but rather a SONET path, which has its own OAM (i.e. POH).
David W. Martin
802.3ah section 57 says that the OAM defined is for single link (or emulated link), and should not be forwarded by bridges/switches.
My question is, in case of Ethernet over SONET transport (GFP + Virtual concatenation), should the OAMPDU be terminated at the EOS device or it should be transparently transported?
Consider this example:
OLT1 -------------- ONU 1------------------ ONU 2 ------------ OLT 2
Ethernet SONET Ethernet
Assume OLT1 and OLT2 are the customer equipments and ONU1 and ONU2 are provider
transport equipments that transport Ethernet over SONET (but don't do any switching/bridging).
In this case should ONU1 terminate OAMPDUs from OLT1 or it should sent them transparently to OLT2?
In other words is OLT1--ONU1 considered a single link? what about ONU1 to ONU2, is this also a link?
Thanks in advance,