For each new peer added, a pseudowire is signaled to carry traffic for this Layer 2 VPN. Up to 64 peers can be added to a VPLS; and only one peer can be added to a VPWS. For each peer added, that remote peer must also configure this local LSR as a peer for the Layer 2 VPN. For VPLS configurations, this insures that the VPLS core is configured as a full mesh of VPLS peers.
The Layer 2 VPN names on each peer do not have to match since the pseudowire ID is used to define the Layer 2 VPN to which each pseudowire is associated.
Once the peer is deleted, that specified peer is no longer a member of the Layer 2 VPN. For VPLS configurations, the peer must also be removed from all other VPLS peers to insure a proper full mesh and to prevent connectivity issues.