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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).

T1 lines carry about roughly 30 times more data than a normal dial-up modem.

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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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.

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.

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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.