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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).

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VoIP can provide big company telephone features on a small company budget. You are not merely trading one system for another: VoIP represents the next generation of telephony and messaging: Control calls anytime from anywhere, view incoming calls, view missed calls, view calls you have placed, view your voice messages like emails (find the voice message you want to listen to first – listen to it through your phone, remotely, or on any sound-enabled computer, forward it to another user or an email box), click to call people in your contact directory, enjoy four-digit dialing to all of your locations, etc.

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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.

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.

Digital Subscriber Line (DSL) is a voice and data access service that supports both voice and data communication across a copper plain old telephone serivce (POTS) line and significantly increases the digital capacity of analog POTS access lines.

You can compare MPLS to Frame Relay and ATM technologies.

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Layer 2 MPLS VPNs (L2VPNs) are similar to Frame Relay, Asynchronous Transfer Mode, or point-to-point Wide Area Networks (WANs).