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 connection can support up to hundreds of desktop computers depending upon the applications and bandwidth being utilized.

Hosted Voice over Internet Protocol (VoIP) is a voice and data technology that supports several telecommunications protocols, such as Session Initiation Protocol (SIP) and Internet Protocol (IP), that that makes it easy for people to use the Internet to make telephone calls while saving money on premise hardware.

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Ethernet can be used to connect twisted copper pair networks and to connect fiber optic cable networks.

MPLS works across various data protocols such as the Internet Protocol (IP), Asynchronous Transport Mode (ATM), and frame relay. MPLS forwards most packets at layer 2 (switching) instead of at layer 3 (routing) level.

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 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.