If you’re looking for ways to maintain reliable and consistent network performance across distributed locations, you’ve likely heard about MPLS. More than 67% of global corporations currently use MPLS solutions to support their distributed business operations1 – but what does MPLS actually mean, and how might it fit into your business communications strategy?
At Netlink Voice, we’ve worked with businesses of all sizes to implement MPLS networks that support voice, data, and cloud applications with confidence. In this blog, we’ll break down how MPLS networks work and why enterprises continue to rely on this technology.
What Does MPLS Stand For?
MPLS stands for Multiprotocol Label Switching. It’s a networking technique that directs data from one node to the next using labels instead of IP addresses. This method streamlines the path data takes through the network – allowing for more predictable, secure, and high-performance delivery.
Unlike traditional IP routing, which makes decisions based on destination IP at every hop, MPLS assigns a label to packets at the network’s edge. That label determines the pre-defined path (called a Label Switched Path or LSP) that the data follows through the MPLS connection.
What Is MPLS in Networking?
In basic terms, MPLS is a protocol-agnostic technique used to speed up and shape traffic flow across wide area networks (WANs). It sits between Layer 2 (data link) and Layer 3 (network) in the OSI model – sometimes called a “Layer 2.5” solution.
Organizations use MPLS in networking to:
- Prioritize specific types of traffic, like voice or video
- Improve latency and reduce jitter for real-time applications
- Deliver private, secure network connectivity across multiple sites
- Guarantee quality of service (QoS) levels across service provider backbones
MPLS networks are especially popular among businesses with distributed offices, especially those with mission-critical applications or stringent performance requirements.
MPLS Circuit vs. Traditional Internet Connections
An MPLS circuit is a dedicated, managed connection provided by a carrier that routes traffic along label-switched paths. These circuits differ significantly from a standard public internet connection in terms of:
Traffic Prioritization
MPLS provides built-in support for QoS, which means you can prioritize VoIP, video conferencing, or enterprise resource planning (ERP) traffic over bulk file transfers. This means critical communications stay clear while background processes don’t interfere.
Broadband and fiber connections deliver best-effort service without any inherent traffic prioritization. During peak usage times, all traffic competes equally for available bandwidth. For example, a large file download may slow down a video call because the network treats them the same way.
Security
Since MPLS operates over a private network, it provides a secure layer of separation that protects your data from threats commonly found on public networks. Your traffic travels through the carrier’s dedicated infrastructure, isolated from other users’ traffic.
Broadband and fiber internet are shared public networks. Your data travels over the same cables as countless other users. While you can add encryption and other security measures on top, the underlying connection lacks the inherent isolation that MPLS provides.
Predictability
MPLS protocol is highly predictable because data follows predetermined routes. You know what to expect from your network day in and day out, which makes it easier to plan capacity, set expectations for employees and customers, and deliver reliable service.
Broadband and fiber internet performance varies based on network congestion. When your neighbors or other internet users on the same connection are consuming bandwidth, your performance can suffer during peak hours. If you’re running a business that depends on consistent performance, this unpredictability creates challenges.
Is SD-WAN Better Than MPLS?
With the rise of SD-WAN, many businesses are evaluating whether MPLS is still the right fit. The short answer? It depends on your needs.
MPLS Advantages Over SD-WAN
- Predictable performance for latency-sensitive apps
- Stronger QoS enforcement via provider-controlled infrastructure
- Integrated SLAs that guarantee uptime and performance
SD-WAN Advantages Over MPLS
- Lower cost by using multiple internet links
- Greater flexibility for branch deployments and cloud connectivity
- Centralized management and application-level control
Many modern environments opt for a hybrid network approach – using MPLS for critical traffic and SD-WAN for cloud access or remote locations. At Netlink Voice, we help clients design and deploy the right mix of MPLS, broadband, and SD-WAN based on their priorities.
MPLS Meaning for Businesses: Benefits & Use Cases
MPLS may be a behind-the-scenes technology, but the business impact is front and center. Here’s why many organizations still rely on MPLS networks:
- Reliable Performance: MPLS data follows a set path with minimal deviation. This ensures predictability, which means you can count on consistent performance for your most important applications.
- Scalability: With MPLS, you can easily connect new locations or services to your network without major infrastructure overhauls. As your business grows, you grow your MPLS network alongside it.
- Application-Aware Routing: MPLS lets you prioritize bandwidth for your most important services. Your voice calls get the resources they need, while less time-sensitive traffic adapts to the available capacity.
- Reduced Downtime: MPLS networks offer built-in redundancy and failover paths. Traffic automatically switches to alternate routes if one connection fails, so your business keeps running.
- Improved User Experience: Recent research shows that organizations can reduce latency by 23-31% for international connections with MPLS.2 This is especially noticeable for real-time applications – VoIP calls sound clearer, video conferencing works smoother, and employees staying connected remotely experience better performance.
The use cases for MPLS are diverse. For example, a call center might use MPLS to prioritize call traffic for high-quality conversations, knowing that dropped calls or poor audio frustrate customers and agents, while manufacturing companies may use it to connect factory equipment across locations for real-time monitoring and control.
Design a Right-Fit MPLS Network With Netlink Voice
Choosing the right network for your business depends on your specific operations, performance requirements, budget, and growth plans. That’s why finding a provider who takes time to understand your situation matters more than generic solutions. You need a partner who will evaluate your current environment, identify your pain points, and design something tailored to what you actually need.
At Netlink Voice, we help businesses implement the right-fit private networking solutions. We understand the complexity that comes with multi-location connectivity – and we help simplify it through end-to-end solutions, whether it’s pure MPLS, SD-WAN, or a hybrid of both.
If you’re exploring your options for private networking or considering a refresh of your current infrastructure, our team is here to guide you. Let’s talk about how MPLS or hybrid networking can work for your business. Contact us today.
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