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).

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

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.

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