What is MPLS?
• MPLS is a high-performance traffic-forwarding technology that
moves data using labels instead of IP lookups.
It sits between Layer 2 and Layer 3, which is why it’s often called a
“Layer 2.5” technology.
Traditional IP Routing → Every router checks the destination IP
MPLS → Only the label is checked and swapped
As a result, MPLS delivers:
Faster forwarding
Deterministic paths
Traffic engineering
Strong Quality of Service (QoS)
MPLS
• High-End Enterprise Networking Technology
Why MPLS is Used
• MPLS is used because it provides
– guaranteed performance,
– low latency,
– high security,
– and reliable,
– SLA-based connectivity for business-critical
applications
• something the public internet cannot ensure.
MPLS Working Style
Multiprotocol Label Switching (MPLS) works by forwarding data using labels
instead of IP lookups, which makes traffic faster, predictable, and secure.
Step-by-Step Flow:
1️⃣ Ingress Router (Entry Point)
Receives the IP packet → assigns a label → pushes it into the MPLS network.
2️⃣ Core Routers (Transit Network)
Only swap labels and forward packets at high speed (no IP checking).
3️⃣ Egress Router (Exit Point)
Removes the label → forwards the original IP packet to the destination.
Result: Fast, private, SLA-backed, and optimized data flow.
Ingress Router (LER)
Assigns MPLS label based on destination and QoS.
• This is the first MPLS router that receives customer traffic.
• Functions:
• Reads the destination IP
• Classifies traffic (Voice, Video, Data, Critical Apps)
• Assigns a label
• Pushes the packet into a pre-defined Label Switched Path
(LSP)
• At this point, IP routing stops inside the core — only labels
matter now.
Core Network (LSR)
Performs label swap and forwards traffic at high speed.
• These are provider backbone routers optimized for speed.
• What they do:
• Never inspect IP headers
• Perform only:
– Label-In → Label-Out → Forward
• Use LFIB (Label Forwarding Information Base) instead of routing
tables
This is why MPLS:
• Is ultra-fast
• Has predictable latency
• Supports traffic engineering
Egress Router (LER)
Removes label and forwards IP packet to destination.
This is the last MPLS router before the destination site.
Functions:
– Removes (pops) the MPLS label
– Converts packet back into normal IP
– Forwards it to:
• Branch
• Data Center
• Cloud
• DR Site
End-to-end communication is private, optimized, and
SLA-backed.
Why Enterprises Trust MPLS
Guaranteed Bandwidth (SLA-based)
Ultra-Low Latency & Jitter
Application Prioritization (QoS)
Near-Zero Packet Loss
Private Network (Not Public Internet)
Carrier-Grade Redundancy
Fast Reroute (50ms convergence)
This is why MPLS is preferred for:
– Core banking
– Stock trading platforms
– Voice & Video conferencing
– ERP & CRM connectivity
– DC–DR replication
Is MPLS Still Relevant in the SD-WAN
Era?
• Yes — and here’s why:
• SD-WAN provides cost optimization
• MPLS provides performance guarantee
• Modern enterprises now use:
• Hybrid WAN = MPLS + SD-WAN + Internet
• This delivers the perfect balance of
performance + cost + resilience.
MPLS vs Internet – The Real
Difference
Public Internet
Feature MPLS
Network Type Private Public
Routing Method Label Switching IP Routing
Latency Predictable Variable
QoS Guaranteed Best-Effort
Security High Exposed
Packet Loss Near Zero Possible
SLA Yes No