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.

VoIP over Internet Protocol (IP), or VoIP, is a managed voice and Internet solution for businesses that falls into the industry niche referred to as IP Centrex (a feature-rich hosted analog voice solution), or Hosted Private Branch Exchange (PBX) that provides many features and capabilities that transform business communications beyond what traditional voice and data networks can offer.

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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.

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.

A major feature of Internet over Ethernet is the ease in which you can upgrade from 1 Mbps to 1 Gbps. Simply call your Internet Service Provider (ISP) and ask for an upgrade and it can be provisioned almost in real time. This service is the future of Internet access for the foreseable future.

Digital Subscriber Line (DSL) connects end users (subscribers) to the Internet via a plain old telephone service (POTS) line that uses an existing copper pair but has been sped up by a Digital Subscriber Line Access Multiplexer (DSLAM) located at the service provider centeral office (CO) to form a continuous digital high-speed data connection from the customer premise to the Internet.

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.