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).

A T1 local access connection to the Internet that can be configured to carry either 24 digitized data channels or one aggregated concatenated data channel at a rate of 1.544 Megabits Per Second (Mbps) that is connected via a T1 Wan Interface Card (WIC), Channel Service Unit / Data Service Unit (CSU/DSU), and Internet router.

Voice over IP (VoIP) sends voice data in packets using the Internet Protocol (IP) instead of analog waves as does plain old telephone service (POTS) lines.

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Multiprotocol Label Switching (MPLS) can be used to create intelligent networks that support advanced data packet management over a single network while saving money. MPLS can be integrated seamlessly over any existing infrastructure such as IP, Frame Relay, ATM, or Ethernet and end users with different types of local access circuits may be joined together on the same network without changing their current access protocols.

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.

Asymetric DSL (ADSL) allows more bandwidth to move data toward the end user (multimedia and text) than from the end user (mostly keystrokes and mouse behavior) 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.