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.

The wide-spread use of Ethernet has reduced the cost of Ethernet switches and also the space required to deploy Ethernet networks either via twisted pair copper or fiber and virtually all computer manufacturers include an Ethernet card as a standard component on Personal Computer (PC) motherboards which eliminates having to install an Ethernet card as a peripheral device.

DSL service is delverd as Asymmetric DSL (ADSL) which is the most common application for Internet access, where fast downstream is required, but slow upstream is acceptable, and as Symmetric DSL (SDSL) which supports high speed access across the local access loop in both directions.

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.