5 Key Differences Between MPLS and Leased Line

Business enterprises with offices across multiple locations use massive amounts of internet data for their daily operations. With the quick rise in cloud services, big data, video calling, and other data-consuming internet applications, businesses now need a dedicated internet solution to support their operations. This dedicated internet must cater to every office a business enterprise operates and ensure effective coordination among the various offices.

For enterprise-based internet solutions, the two most popular options for businesses are MPLS and leased line connections. These services are popular among businesses worldwide and are at the forefront of enterprise-based internet solutions. However, MPLS and leased line connections are not the same; they differ greatly. Let us see how.

What is MPLS?

Multi-protocol label switching (MPLS) is a packet-switching, data-routing protocol. MPLS connections are usually a mesh network, offering connectivity between multiple points in a network. MPLS is a Layer 2.5 protocol since it is a layer that operates between Layer 2 or the data link layer and Layer 3 or the network layer.

How Does MLPS Work?

MPLS works by assigning labels to each data packet. These data packets are assigned a predetermined path for transmission through the network. As these data packets travel through the network, they are assigned a new label at each point. Moreover, the router does not examine the contents of the data packet at each point in an MPLS network. Instead, it just examines the label and routes the data to the appropriate node. This process is repeated until the data packet reaches its destination.

By eliminating the need to check the contents of each data packet, MPLS offers users adequate flexibility to control the network. Users can define paths for every data packet and facilitate traffic engineering. Additionally, MPLS reduces the network’s dependence on a specific data link technology, such as ATM (asynchronous transfer mode) or Ethernet.

What is a Leased Line?

A leased line or internet leased line is a private network between two or more points. Service Level Agreements (SLAs) between the internet service provider and the business user govern leased line connections. In a leased line, data is always transmitted from point to point. Leased line connections are always active, and hence, users never face downtime risks.

How Does a Leased Line Work?

In a leased line connection, a business exclusively rents an internet leased line between two points or locations. Thus, a business does not share an internet leased line with any other customer and gets exclusive access to the bandwidth available. Leased line technology is older than MPLS, and yet, it is still popular today. Leased lines in the modern era use fiber-optic or copper cables for data transmission. With a leased line connection, businesses can easily increase the bandwidth they need as their operations and data consumption levels grow.

MPLS vs. Leased Line – 5 Key Differences

• Reliability

Internet leased lines provide exclusive internet bandwidth to business users. Business users do not share this bandwidth with other users. Moreover, SLAs between a business user and an internet service provider ensure a minimum level of internet speed and bandwidth. Thus, there is no chance of a drop or downtime in internet speeds with internet leased lines.

On the other hand, MPLS is a mesh network shared by multiple business users. Therefore, there may be instances where a business user faces downtime or less than guaranteed internet speed, especially if there is a huge load on the network. MPLS is reliable, but less so if you compare it with an internet leased line connection.

• Security

Internet leased lines are private networks, and hence, they offer the most secure internet connection between two points. Internet leased line services often have inbuilt security features. For example, Airtel’s Internet leased line enables users to choose optional DDoS protection and firewall services for their leased line.

MPLS does not have such built-in security features. Moreover, as multiple users share an MPLS network, it is not as secure as an internet leased line connection.

• Scalability

Due to the mesh feature, MPLS networks easily connect multiple locations. Therefore, a business enterprise looking to set up operations across multiple locations will benefit from an MPLS network. Thus, a business enterprise will be able to easily scale its operations by connecting to the MPLS network.

Leased lines do not offer as much scalability, making it difficult for a business to scale its operations. As they are a dedicated line between two points, businesses would need to lease multiple lines between every office to support their operations across offices. It is much easier for businesses to switch to a mesh network connecting all their offices operating out of different locations.

• Costs  

As multiple users share an MPLS network, they also share the costs of using the internet bandwidth. However, in an internet leased line connection, a user has sole ownership of the bandwidth. Hence, users must pay a higher fee to the internet service provider. Therefore, MPLS is more pocket-friendly compared to leased lines.

• Skills required 

Leased lines have existed for decades, while MPLS is a newer technology. Setting up an MPLS connection requires highly-skilled, technical professionals. Thus, a business needs to hire or consult a team of skilled MPLS technicians. However, leased line connections are easier to set up and do not require high technical competence.

Business Requirements Determine the Choice Between MPLS and Leased Line

When choosing between MPLS and leased line connections, the decision ultimately depends on your business requirements. Enterprises that need to establish a vast office network would benefit more from MPLS. On the other hand, businesses that need a reliable and secure connection with guaranteed internet speed should switch to leased line connections.