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 is a standardized data switching technology that optimizes network traffic flow and eases management of data networks. MPLS carves specific paths data packets that are identified by a label that saves the time needed for a router to look up the address to the next node in order to forward the packet. MPLS works with the Internet Protocol (IP), Asynchronous Transport Mode (ATM), and frame relay network protocols. MPLS allows most packets to be forwarded at the layer 2 (switching) level rather than at the layer 3 (routing) level and makes it easy to manage quality of service (QoS).

Ethernet access to the Internet is quickly becomming a popular service. Ethernet, which is usually thought of as the protocol used to connect computers and servers on a local area network (LAN), is now increasingly being used across metropolitan wide area networks (WANS) to connect corporate LANs to the Internet. The advantage of Ethernet Internet Access service is that connection speeds that range from 1 Megabit per Second (Mbps) to 1 Gigabit per Second (Gbps) can be accessed via the same protocol being used on corporate LANs.

POTS local loop speed is increased by up to 50 times when a DSL modem is attached at the customer premise and a Digital Subscriber Line Access Multiplexer (DSLAM) is connected to the local access loop at the local telephone company central office (CO).

You can compare MPLS to Frame Relay and ATM technologies.

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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).