MPLS VPNs transport layer 2 packets across the network and encapsulate transport protocols such as ATM, Ethernet, and SONET, allowing MPLS networks to seemlessly upgrade and replace legacy layer 2 networks without requiring network reconfiguration or using protocols higher than layer 2. In comparison, layer 3 VPNs must use the layer 3 Internet Protocol (IP).

An Internet T1 (or T-1) T1 is a symmetrical local access connection to an Internet port that allows for downloads and uploads of up to 1.5 Mega Bits Per Second (Mbps) which is 30 times as fast as a 56 Kilo Bits Per Second (Kbps) dial-up connection over a standard Plain Old Telephone Service (POTS) phone line.

Hosted VoIP eliminates the need to purchase or lease expensive PBX equipment to gain advanced calling features such as voicemail, automated attendants, extension dialing, call forwarding, call park, or call transfer. Hosted VoIP also eliminates the need to obtain service from multiple carriers for local and long distance calling, PBX tie-lines, private lines, etc. The service also includes Internet access and Quality of Service (QoS) to guarantee voice quality all on one invoice. Hosted VoIP offers freedom from legacy equipment costs, eliminates reliance on slow-moving traditional phone companies, multiple bills, and offers flexibility to deliver customized user productivity solutions for your company.

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MPLS network is particularly important to businesses running applications that require latency such as VoIP, ERP, SAP, etc.

A major feature of Internet over Ethernet is the ease in which you can upgrade from 1 Mbps to 1 Gbps. Simply call your Internet Service Provider (ISP) and ask for an upgrade and it can be provisioned almost in real time. This service is the future of Internet access for the foreseable future.

Digital Subscriber Line Service (DSL) has become a very popular Internet access service. This is because DSL uses the existing copper pairs that already exist between most customer premise offices and the local phone company central office (CO). A DSL connection is set up between a DSL modem at the customer premise and a DSL access multiplexer, or DSLAM, at the phone company central office. Both voice and data can be run across the same DSL connection by using a filter to separate voice traffic from Internet traffic.

You can compare MPLS to Frame Relay and ATM technologies.

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MPLS can be used to create highly-scalable IP networks with layer 2 level security as well as easy network configuration, management, and provisioning.