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.

Voice over Internet Protocol (VoIP) service that sets up telephone calls over the Internet that are often billed at a flat rate and leverage subscribers existing broadband Internet connection. This saves money in that only one connection is needed for both voice (phone) and data (Internet) service.

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As business networks face increasing numbers of applications with low latency and high bandwidth demands, MPLS allows network administrators to specify which applications should be prioritizes above others so that data flows across the network is an organized fashion that reflects the relative business importance of various type of data.

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.

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MPLS makes it easier to manage network for quality of service (QoS) because packets can be prioritized by business importance. For example, Voice over IP (VoIP) can be prioritized over email and web browsing packets.