Control of the egress tunnel endpoints by the provider ISP (from Y. Rekhter Review)

[luigi@…]

This is part of Comment 39

Section 8.3

Use of ISP PE routers as tunnel endpoint routers gives an ISP control
over the location of the egress tunnel endpoints. That is, the ISP can
decide if the tunnel endpoints are in the destination site (in either
CE routers or last-hop routers within a site) or at other PE edges.

How is this done, as the CE router (probably) and last-hop within a
site (surely) is under control of the customer, not the ISP.

The advantage of this case is that two or more tunnel headers can be
avoided.

Only if the extra header in question would be imposed by the first-hop
ISP. Any other ISP would still need to impose their own header in
order to do TE.