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Large and midsize organizations link their domestic and international sites together by using Multi-Protocol Label Switching (MPLS), which is a Virtual Private Network (VPN) service. MPLS traffic is carried on a provider’s core private data networks rather than on the Internet. MPLS is suitable for transmitting packetized voice (VoIP), video, and data between sites.
MPLS is also referred to as MPLS IP VPN because it uses the IP and provides VPN functionality. VPNs have the features and functionality of private networks. However, unlike private lines, which are not shared and are for the exclusive use of a single organization, MPLS operates on network links shared by other customers. The links are virtually private, and they still offer many of the features found on private lines such as user control and privacy. In addition, they are less costly than private lines to lease and operate.