Hi Dino.

I'm not really asking about TTL processing for tunnels in
general... I'm asking specifically in the context of virtual network
service, where tenants are connecting to virtual networks expecting
either L2 or L3 service. What expectations  to the TSes have  when it
comes to TTL modification?

In the L2 case, tenatnts expect to be given service equivalent to an
L2 broadcast domain. I.e., nodes can talk directly to each other at
the L2 level using unicast/multicast. This is what we usually think of
as being attached to a shared "link".

But what if the service being provided is L3? In this case TSes are
only sending IP packets, but all TSes are directly reachable (i.e.,
without leaving the VN). What expectation do TSes in this type of
situation expect of the TTL processing?

Do they even care?

Thomas

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