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 (also spelled Internet T-1) is a high-speed digitally transmitted connection to the Internet that transfers signals at 1.544 Mbps (1,544,000 bits per second) that can be divided into twenty-four 64 Kbps telephone lines or trunks.

VoIP can provide big company telephone features on a small company budget. You are not merely trading one system for another: VoIP represents the next generation of telephony and messaging: Control calls anytime from anywhere, view incoming calls, view missed calls, view calls you have placed, view your voice messages like emails (find the voice message you want to listen to first – listen to it through your phone, remotely, or on any sound-enabled computer, forward it to another user or an email box), click to call people in your contact directory, enjoy four-digit dialing to all of your locations, etc.

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MPLS VPNs use Multiprotocol Label Switching (MPLS) to set up Virtual Private Networks (VPNs) that can isolate data traffic to provide Class of Service (CoS), Quality of Service (QoS), and ease network administration with minimal network overhead. Layer 3 MPLS VPNs (L3VPNs) use BGP, traffic isolation and Virtual Routing / Forwarding (VRF) for network routing and security. MPLS VPNs are more efficient and robust than IPSec VPN, ATM, MPLS L3VPNs.

Internet access via Ethernet is becoming more and more popular to meet the growing demand for dynamic high bandwidth increases. For example, an increase from 10 to 100 Mbps can be accomplished by a High Speed Internet over Ethernet provider by simple changing the settings on already installed Ethernet switches. This scalability is cost effective for customers in that bandwidth can be increased or decreased quickly and easily, on demand, without the necessity of adding or changing datacom equipment as would be required with T1 / T3 or E1 / E3 local access lines.

Digital Subscriber Line (DSL) is a voice and data access service that supports both voice and data communication across a copper plain old telephone serivce (POTS) line and significantly increases the digital capacity of analog POTS access lines.

You can compare MPLS to Frame Relay and ATM technologies.

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MPLS can be used to facilitate layer 3 IP VPNs, layer 2 VPNs, Quality of Service (QoS), Class of Service (CoS) and to guarantee Service Level Agreements.