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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 (sometimes spelled T-1) is a high speed telecommunication line that can carry 24 digitalized voice channels, or it can carry data at a rate of 1.544 megabits per second.

Voice over IP is a digital phone service that allow users to make calls across the public switched telephone network (PSTN) via the Internet. By using a high speed Internet connection and a VoIP phone or analog telephone adapter (ATA), a user receives the same type of phone service as plain old telephone service (POTS) plus many additional features. For example, find me / follow me allow a user to enter all of the phone numbers the user wants to ring when the user's VoIP phone number is called. If you are at home, at the office, or on your mobile phone, all of your phones can be rung in succession or at the same time using VoIP!

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The main limitation on DSL bandwidth speed is the distance from the customer premise to the local telephone company central office.

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).

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.

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).

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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.