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 line) is a digital, dedicated local access connection supporting data rates of 1.544 Megabits Per Second (Mbps) that can be channelized into 24 individual channels that each provide 64 Kilobits Per Second (Kbps).

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MPLS works across various data protocols such as the Internet Protocol (IP), Asynchronous Transport Mode (ATM), and frame relay. MPLS forwards most packets at layer 2 (switching) instead of at layer 3 (routing) level.

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Layer 2 MPLS VPNs (L2VPNs) are similar to Frame Relay, Asynchronous Transfer Mode, or point-to-point Wide Area Networks (WANs).