MPLS Explained: What Is Multi-Protocol Label Switching? MPLS is a high-performance network protocol used in ISP core networks to efficiently direct data between nodes using labels instead of IP lookups. It sits between Layer 2 and Layer 3, encapsulates multiple protocols, and is ideal for interconnecting customer sites securely. This video provides a simple introduction to MPLS, comparing it to traditional IP routing and explaining its key benefits. MPLS, multi-protocol label switching, label switching, ISP core network, Layer 2.5, MPLS tutorial, network efficiency, label swapping
What is MPLS?
Multi-Protocol Label Switching (MPLS) is a high-performance network protocol that uses short, fixed-length labels to direct data efficiently between nodes, mostly found inside an ISP's core network or other large geographically dispersed networks. To fully appreciate MPLS, it helps to understand foundational networking concepts like the IP, TCP, and UDP Explained: Networking Fundamentals for A+ Certification.
Key characteristics
- Sits between Layer 2 (Data Link) and Layer 3 (Network), often called a Layer 2.5 protocol. For a refresher on the OSI model layers, check out the CCNA Course: TCP/IP vs OSI Model Explained – History & Layers.
- The MPLS header is placed between the Layer 2 frame header and the Layer 3 IP header.
- Multi-protocol: can encapsulate IPv4, IPv6, Ethernet, ATM, Frame Relay, T1/E1, DSL, and more.
- Acts as an underlay network that transports various payload types, supporting multiple overlay technologies.
Where is MPLS Used?
MPLS is not a last-mile or WAN access technology (like DSL, cable, or fiber). Instead, it operates behind those access links. ISPs use MPLS to:
- Interconnect multiple remote customer sites.
- Securely and efficiently separate traffic from different customers over a single infrastructure.
- Provide high-performance connectivity for large enterprise networks that own their own WAN.
MPLS is typically found in geographically large ISP networks, not in small/medium enterprise networks.
Why Use MPLS Over Traditional IP Routing?
Traditional IP routing requires each router to perform a CPU-intensive longest-prefix match on the destination IP address, a process repeated at every hop. With thousands of customers and millions of packets, this becomes resource-heavy.
How IP routing works (less efficient)
- At each router, the packet's destination IP is compared sequentially against the routing table (potentially thousands of entries).
- Once a match is found, the exit interface is determined.
- The process repeats at every subsequent node until the destination is reached.
How MPLS label switching works (more efficient)
- The first router (edge router) assigns a label to the packet based on the customer/flow and prepends an MPLS header.
- Each intermediate router examines only the label (not the full IP header) and looks it up in its forwarding table.
- The label may be swapped with a new label for the next hop, this is called label swapping.
- The process continues until the last router (egress) removes the label and forwards the packet using its original IP header.
Advantages of label switching
- Faster forwarding – no complex IP lookups at every hop.
- Fixed-length labels simplify the lookup process.
- All packets with the same label typically follow the same path, unlike IP routing where paths can change per packet.
- Reduces CPU and memory demands on core routers, critical for high-capacity backbone networks.
Core Concepts
- Label: a short, fixed-length identifier attached to each packet.
- Label Swapping: replacing the incoming label with a new label for the next hop.
- LSP (Label Switched Path): the predetermined path a labeled packet follows through the MPLS network.
Summary
MPLS is a powerful underlay technology that brings speed, efficiency, and multi-customer separation to large ISP networks. By switching labels instead of routing IP addresses, it dramatically reduces processing overhead and enables scalable high-performance data transport. For a practical look at how switches handle data forwarding vs. other devices, see the CCNA Day 1: How Switches Work vs Hubs & Hands-On Packet Tracer Lab.
This is the first video in a series on MPLS. Future videos will dive deeper into configuration, LDP, VPNs, and more.
Hello! This is Lazarus at telecom.Tech, where telecom and networking technologies... are simply explained! Today we'll be simply explaining multi-protocol label switching or MPLS. Now this is the first video in a new series of videos about MPLS. If you want to be informed
about every new video that comes out so that you can follow along, please subscribe and enable notifications. And if you like this video, please like this video. What is MPLS? To be honest with you, I had a really hard time when I was learning about MPLS. It's a technology that's quite
different from the more traditional IP routing and Layer 2 switching that we learn about, and for this reason it was difficult for me to get my head around. There are so many different ways to implement it depending on what you want to achieve and it interacts with many other features and
protocols in order to fulfill its function. So as I was thinking about how to approach MPLS in this series, the thing that really stuck in my mind was the fundamental principle that I always try to use with all of my videos: I'll try to explain MPLS in a way that I wish I had been taught when I was
learning about it. So hopefully this approach will work out well for you too! So what is MPLS? In its most fundamental form, it's a high-performance network protocol used to efficiently direct data between nodes. It's a protocol that you would most often find within the core network
of an ISP or other large geographically dispersed networks. In contrast to more traditional routing based on network addresses, MPLS uses labels to identify established paths between endpoints on the network. MPLS is able to encapsulate packets of all types of network protocols,
and that is where the "multi-protocol" part of its name comes in. Indeed MPLS can encapsulate a whole range of technologies including IPv4, IPv6, Ethernet, ATM, frame relay, and even lower layer technologies such as T1/E1 lines as well as DSL. So in this sense, MPLS can be considered
a tunneling protocol, although the term "tunnel" is not as commonly associated with it. Instead, MPLS is viewed more like an underlay network capable of transporting various payload types and supporting multiple overlay technologies. Now because of its nature, MPLS is sometimes
referred to as a "Layer 2.5" protocol because it operates in a manner that seems to be somewhere between the traditional Data Link Layer which is Layer 2 on the OSI model, and the Network Layer which is Layer 3 on the OSI model. And as you you will see later in this video,
when the MPLS header is actually appended to a packet, it's actually placed between the Layer 2 and Layer 3 headers of the data. Now having said all of this, what is MPLS really used for? It's not a technology that you would find deployed in a small or medium-sized enterprise network,
and unless an organization is extensively large and owns its own WAN infrastructure, you would not typically see it even on large enterprise networks. MPLS is a technology that is most often deployed within geographically large ISP networks. Its purpose is to interconnect
multiple remote sites. An ISP will typically have many customers and an MPLS network can be used to interconnect the remote locations of those customers. It provides an ideal infrastructure to be able to securely and efficiently separate the traffic from multiple customers, but also
allow that traffic to leverage the same single MPLS infrastructure. One other point I would like to make here is that MPLS's primary purpose is not to connect a premises to the Internet. In other words, MPLS is not a WAN access technology or a last mile technology like cable or DSL or
fiber to the premises. MPLS may be deployed over these last mile technologies, but MPLS itself does not constitute a WAN access technology. So the connection here for example to Customer 2 may be a fiber connection that delivers connectivity to the MPLS infrastructure, it may be a DSL line,
it may be cable, it may be a wireless microwave link... it doesn't really matter. MPLS is not involved with that last mile but it is served by those last mile technologies. Now why use MPLS? Why not just use traditional IP routing to enable communication between these customer sites? Well,
there are several advantages that MPLS provides over IP routing that make it a much better choice, and arguably the most important benefit is that on high-capacity high-throughput networks, label switching is much more efficient than IP routing. Now to see this, let's take a look at
how IP routing would be used to route data through a network such as this. Now imagine that each of these routers is running a routing protocol such as OSPF, or EIGRP, or even BGP, and imagine that there are thousands of customers connected to this ISP network. That means that each of these
routers will have created a routing table that has been populated by potentially thousands of routing entries. Once a packet reaches this router here, the destination IP address of the packet is examined and compared sequentially with every entry in the routing table until a match is found.
It may have to go through dozens, hundreds, or even thousands of entries before it finds the one that matches. Once that's done, the exit interface is determined and the packet is sent out of that interface to reach the next node in the path. At this point the process is repeated in this node
with a routing table lookup, a match with the destination IP address, and the packet is then sent along its way. Once again, the process is repeated at each subsequent node until the packet reaches the intended destination. Now I'm sure you can see that this process is quite CPU intensive
at each individual node, and if you have thousands of customers with thousands of destination addresses with innumerable packets running through this high-capacity backbone network, you can imagine the CPU and memory resources needed to achieve this at each node. Now label
switching which MPLS uses is much more efficient and is thus preferable. Let's see it in action. When an IP packet arrives at the first router of the MPLS infrastructure, it is associated with a specific label based on the specific customer from which the packet came. The packet is prepended
with an MPLS header which contains that label. Now the MPLS header looks something like this, and as you can see, the header is placed between the IP header here and the frame header, right between Layer 2 and Layer 3. As the packet traverses the MPLS network, each intermediate node
examines only the label attached to the packet, not the full IP header, and it uses that label to make forwarding decisions. That label is looked up in the forwarding table and the next node is determined. Every time the packet reaches another node, a label lookup takes place and
the next node in the path is determined, and the packet is forwarded at each node. The label may also be swapped with a new label for the next segment of its journey. This process is known as "label swapping." So all of this continues for every router that's encountered. This assignment
and swapping of labels is at the very core of what MPLS does. Eventually, the packet reaches the final router at the edge of the MPLS network. Here the MPLS label is removed and the packet is forwarded based on its original IP header. Now the key here is that labels simplify
the forwarding process by reducing the need for complex IP header lookups at each hop by relying on short fixed-length labels. MPLS can improve the speed and efficiency of packet forwarding in the network and this is a vital importance for ISP networks that carry a lot of data and that want
to ensure that all of their customers can enjoy high-performance network services. Now once an MPLS path is established, packets with the same labels typically follow the same path through the network and this is unlike traditional IP routing where packets might actually take different paths
based on current route availability or changes in the routing decisions. So all of these characteristics make MPLS efficient and preferable for such network infrastructures. So that's my introduction to MPLS...simple right? We'll go into more detail in future videos but for now, I hope
you found this video useful, and if you have, please click the thumbs-up button! And if you'd like me to address other related topics please feel free to let me know in the comments below, and please subscribe to get updates to newly published videos. I'm Lazarus at telecom.Tech,
I hope this video has been helpful for you, and I'd like to thank you for watching!
MPLS (Multi-Protocol Label Switching) is a Layer 2.5 protocol that uses short, fixed-length labels to forward data, rather than performing CPU-intensive IP address lookups at every hop. Traditional IP routing requires each router to do a longest-prefix match on the destination IP, while MPLS only examines a label at each intermediate node, enabling faster and more efficient packet forwarding.
MPLS is primarily deployed in large ISP core networks or geographically dispersed enterprise backbones, not in last-mile access links like DSL or fiber. It operates behind these access technologies to interconnect remote customer sites, separate traffic securely, and provide high-performance connectivity over a single shared infrastructure.
Label switching reduces CPU and memory overhead on core routers by eliminating repeated complex IP lookups. Each packet is assigned a fixed-length label at the edge, and intermediate routers simply swap labels based on a simple lookup, allowing all packets on the same path to follow a predictable route and improving scalability in high-capacity networks.
The key components include the label (a short identifier attached to each packet), label swapping (replacing the incoming label with a new one for the next hop), and the Label Switched Path (LSP), which is the predetermined route a labeled packet takes through the MPLS network. These work together to enable efficient data transport.
Yes, MPLS is 'multi-protocol,' meaning it can encapsulate and transport various Layer 3 protocols like IPv4, IPv6, as well as Layer 2 technologies such as Ethernet, ATM, and Frame Relay. This flexibility makes it a versatile underlay for supporting multiple overlay technologies.
No, MPLS is typically not used in small or medium enterprise networks because its primary benefits—like traffic separation and efficient label switching—are most valuable in large ISP or geographically dispersed networks. SMEs usually rely on simpler WAN technologies, while MPLS is designed for high-capacity backbones.
MPLS is called a Layer 2.5 protocol because it operates between the Data Link layer (Layer 2) and the Network layer (Layer 3). Its header is inserted between the Layer 2 frame header and the Layer 3 IP header, allowing it to work with multiple Layer 2 and Layer 3 protocols without modifying them.
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