If one of my customer is having 64Kbps capacity line from me and if i use Rate limit to limit his bandwidth to 30Kbps, then is it good or not? Because Rate limit will drop his packets after 30Kbps which reinitiates all TCP processes like connection establishment etc.
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By default, Cisco router will implement "Tail Drop" once packet start exceeding the 30K window. Tail Drop does not care which packets get drop, which is bad since it will affect multiple TCP sessions at once, causing tons of re-try and angry users. Enable WRED on the interface, WRED is selective about which packets get drop.
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