There is no latency from CE to PE ,but observing latency when pinging from vlan as source to ASR/DC routers or DNS in enterprise environment?

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Reasons for latency

Transmission mediums such as WAN or fiber optic cables all have limitations.Propagation is the amount of time it takes for a packet to travel from one source to another .Routers take time to analyze the header information of a packet as well as, in some cases, add additional information. Each hop a packet takes from router to router increases the latency time.Storage Delays can occur when a packet is stored or accessed resulting in a delay caused by intermediate devices like switches and bridges

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