To stay competitive, you need a network that’s fast, reliable, and built for today’s demands. An MPLS circuit boosts reliability across all your locations and provides a layer of separation from the public internet. Understanding how MPLS circuits work could be your next step toward a network that’s ready for anything—keeping you ahead in a fast-paced market.

What you learn from this article:

• What an MPLS circuit is and how it works
• How MPLS stacks up against alternatives
• MPLS benefits, use cases, and costs
• The security provided by MPLS
• How to implement MPLS
• Whether MLPS is right for your network
• Using Meter Connect to integrate your technologies

What is an MPLS circuit?

An MPLS circuit is like a fast pass for network traffic. Instead of making routers stop and check every packet’s IP address like a bouncer checking IDs, it slaps on a label that tells the network exactly where to send it. No detours, no unnecessary decision-making—just a straight shot along a preplanned route called a Label-Switched Path (LSP).

Regular IP routing can slow things down because every router has to figure out the next step, like a driver checking directions at every turn. MPLS skips that hassle. The first router sets the path, and everything else just follows the label. That cuts down on processing time, keeps latency low, and makes sure traffic moves efficiently.

It’s a solid option for businesses that need reliable, high-speed connections between locations. Whether it’s video calls, cloud apps, or massive data transfers, MPLS keeps things running without the usual network slowdowns.

How MPLS works

MPLS rewrites the usual rules of routing. Instead of having every router along the way inspect a packet’s destination and make its own decision, MPLS assigns a label right at the start. That label acts like a backstage pass, telling routers exactly how to handle the packet without second-guessing.

Think of it like a well-organized relay race. The first runner (an entry router) gets the baton (a packet) and tags it with a label. Each handoff along the way follows a pre-planned route, with routers swapping labels instead of wasting time analyzing where the packet needs to go. This cuts down on processing delays and keeps traffic flowing efficiently.

The real advantage comes from consistency. Since MPLS avoids the unpredictability of hop-by-hop routing, it helps keep latency low and performance steady. This is something that’s especially useful for time-sensitive data like:

• Voice calls
• Video streams
• Financial transactions

It’s not about making data move faster, but about getting it where it needs to go without unnecessary detours.

MPLS vs. alternatives

MPLS, SD-WAN, and VPNs all move data across networks, but they take very different approaches. To use a travel analogy:

• MPLS is a private jet.
• SD-WAN is a flexible airline with budget and first-class options.
• A VPN is like taking a road trip—you’ll get there, but the journey depends on traffic.

MPLS vs. SD-WAN

MPLS provides a dedicated, predictable path for traffic, making it a favorite for businesses that can’t afford downtime or lag. If you're running VoIP, video conferencing, or financial transactions that need rock-solid stability, MPLS is the way to go.

But of course, there's still a negative–it’s more expensive and less flexible. MPLS requires dedicated circuits, so scaling up or rerouting traffic isn’t as simple as flipping a switch.

SD-WAN, on the other hand, is like a savvy travel planner. It doesn’t rely on a single connection—it uses multiple internet links (like broadband, LTE, or MPLS) and picks the best route in real time. That makes it more adaptable and cost-effective. If a link gets congested, SD-WAN shifts traffic elsewhere.

MPLS vs. VPN

VPNs create secure tunnels over the public internet, letting remote offices and users connect to a company’s network. They’re like taking the highway with a private lane—it’s safer, but you’re still dealing with public road conditions. Performance depends on internet traffic, so speeds can be unpredictable.

MPLS, by contrast, operates on private circuits, which means no competition with public traffic. It delivers consistent performance without the lag spikes that can hit VPNs. It's a strong choice for businesses that need guaranteed speed and reliability.

Which one is right for you?

If performance and reliability are non-negotiable, MPLS is the safest bet. It’s built for applications where even a little latency is unacceptable. But if cost and flexibility matter more, SD-WAN offers a smart balance. And for remote access without breaking the bank, VPNs do the job—as long as you're okay with the occasional slowdown.

MPLS circuit benefits

MPLS isn’t the cheapest option, but when it comes to performance and reliability, it’s hard to beat. Here’s why some businesses might look toward MPLS.

Speed without the guesswork

Traditional routing makes every stop a decision point, slowing things down. MPLS skips the back-and-forth by pre-planning the route, so packets move with fewer delays. It’s not about raw speed—it’s about avoiding unnecessary detours.

Traffic that knows its place

Not all data is created equal. MPLS lets businesses prioritize important traffic, so real-time applications like VoIP and video calls don’t get stuck behind a massive file transfer. It’s like a fast lane for the data that actually needs it.

Private roads, not public highways

MPLS traffic stays off the public internet, which means fewer slowdowns and less exposure to congestion. But it’s not automatically secure—if encryption is a must, pairing it with a VPN is the way to go.

No more lag-induced headaches

MPLS supports Quality of Service (QoS), which means businesses can make sure their most important applications always get the bandwidth they need. That translates to smoother video calls, fewer dropped connections, and less frustration all around.

MPLS business applications

MPLS isn’t for every business, but for industries that rely on stable, low-latency networks, it’s a game-changer. Here’s where it shines.

Finance needs speed that won’t flinch

Banks and financial firms can’t afford network hiccups. Whether it’s processing trades, handling transactions, or securing sensitive data, every millisecond counts. MPLS keeps things moving with dedicated routes that reduce delays, helping financial institutions maintain fast and predictable performance. While it doesn’t add security on its own, pairing it with encryption keeps sensitive data locked down.

Meter makes it even easier by handling setup, monitoring, and integration with existing IT systems. Businesses get the performance they need without adding to their IT team’s workload.

Healthcare runs on real-time data

From hospitals to remote clinics, patient care relies on quick and reliable data transmission. Electronic health records, imaging scans, and telemedicine sessions need priority over less urgent traffic. MPLS helps by ensuring critical medical data gets where it needs to go without network congestion slowing things down. But like finance, encryption is still necessary for full security.

Meter takes it a step further, simplifying security and compliance while ensuring networks stay reliable. You no longer have to worry about IT infrastructure. You simply get a network that works when it matters most.

Enterprises need consistency

Big companies with multiple offices need networks that behave the same way everywhere. MPLS keeps performance steady across locations, making sure VoIP calls don’t drop, ERP systems don’t lag, and employees don’t lose access to cloud apps. Since it prioritizes traffic based on importance, business-critical applications always get the bandwidth they need.

Meter makes MPLS easy to deploy and manage, taking care of the complexity so businesses can focus on what they do best. No more juggling network configurations—just reliable performance that works across every location.

MPLS cost: What to expect

MPLS pricing depends on factors like bandwidth, distance, and service agreements. Unlike traditional internet services, which charge flat rates for general access, MPLS comes with structured pricing based on:

• How much data you need
• How far it travels
• How reliable you want it to be

What goes into MPLS pricing?

MPLS circuits usually come with a monthly fee based on bandwidth, with higher-capacity connections costing more. There are also setup and installation costs, which can vary depending on the provider and how complex the network is. Some providers offer usage-based pricing, where costs scale with data consumption, though this is less common than flat-rate bandwidth pricing.

How does MPLS compare to SD-WAN and VPNs in terms of cost?

MPLS circuit costs tend to be more than SD-WAN or VPN solutions because they use dedicated infrastructure instead of the public internet.

SD-WAN is often cheaper and more flexible, though it doesn’t provide the same level of guaranteed performance as MPLS.

VPNs are the most affordable option but rely on the public internet, which means higher latency and less predictability for businesses that need reliable connectivity.

Factors that affect MPLS pricing include:

• Distance: The cost of MPLS increases with distance, making long-distance circuits, especially for global networks, more expensive.
• Speed: Higher bandwidth leads to higher costs, with a 10 Gbps circuit costing significantly more than a 100 Mbps connection.
• SLAs (Service Level Agreements): Premium service levels with higher uptime guarantees and lower latency come at a higher price.

If reliability and low latency are non-negotiable, MPLS is worth the investment. However, for businesses looking to cut costs while maintaining flexibility, SD-WAN with MPLS backup is often a smart compromise.

MPLS encryption and security

MPLS offers better security than a standard internet connection, but it’s not inherently encrypted. Instead of exposing data to the public internet, MPLS uses private circuits that isolate traffic from external threats.

How does MPLS handle security?

Unlike VPNs, which encrypt data before sending it over the public internet, MPLS operates on a closed network. This reduces the risk of cyberattacks and prevents unauthorized access, but it doesn’t mean the data itself is encrypted.

Businesses handling highly sensitive information—like banks, hospitals, and government agencies—often combine MPLS with VPNs or encryption protocols for added protection.

Security benefits of MPLS include:

• Traffic isolation: MPLS keeps data separate from public internet traffic, reducing exposure to cyber threats.
• Better data integrity: Since packets follow pre-established Label-Switched Paths (LSPs), they aren’t as vulnerable to rerouting attacks like those seen in traditional IP routing.
• Lower risk of congestion-based attacks: MPLS avoids public internet bottlenecks, reducing the impact of Distributed Denial-of-Service (DDoS) attacks.

How does MPLS compare to public internet security?

MPLS is inherently more secure than standard broadband because it avoids public routes, but it’s not a replacement for encryption. If businesses need end-to-end security for compliance reasons, additional encryption methods should be layered on top of MPLS to protect data in transit.

How to implement MPLS in your business

Rolling out MPLS isn’t as simple as plugging in a router—it requires careful planning and coordination to get the best results. Here’s how businesses can integrate MPLS into their network infrastructure.

Step 1: Assess your network needs

Start by evaluating your current network performance. What applications require low latency? Where are the biggest slowdowns happening? Identifying the mission-critical traffic that needs MPLS will help determine the right bandwidth and configuration.

Step 2: Choose the right MPLS provider

Not all MPLS providers offer the same level of service. Look for a provider that:

• Offers SLAs that meet your uptime and performance needs
• Provides coverage where you need it (especially for global businesses)
• Has experience working with businesses in your industry

Step 3: Work with a managed service provider (MSP) like Meter

Implementing MPLS on your own can be overwhelming. Meter simplifies the process by handling things—from network design and vendor selection to installation and ongoing management. With Meter’s managed MPLS solutions, businesses get expert guidance, ensuring their network runs efficiently from day one.

Step 4: Integrate MPLS with your existing IT infrastructure

MPLS doesn’t replace your entire network—it enhances it. For businesses already using SD-WAN or VPNs, MPLS can be layered in to prioritize high-priority traffic. The goal is to ensure seamless performance across your WAN while keeping costs under control.

Step 5: Monitor and optimize performance

Once MPLS is up and running, continuous monitoring is key. Regularly check network performance, update configurations as business needs evolve, and make adjustments to keep things running smoothly.

Why businesses trust Meter for MPLS

Deploying MPLS doesn’t have to be a pain. Meter’s managed MPLS solutions take the guesswork out of implementation, providing expert consultation, seamless setup, and ongoing support. Whether it’s optimizing traffic flow, integrating with existing IT infrastructure, or ensuring security compliance, Meter makes MPLS work—without complicating things.

Figuring out if MPLS is the right move

Not every business needs MPLS, but for some, it’s the difference between a network that works and one that’s constantly causing headaches. The trick is knowing if it’s worth the investment or if another option—like SD-WAN—makes more sense.

Performance that won’t leave you hanging

If your network can’t afford to lag, MPLS is a strong contender. It keeps VoIP calls crisp, video meetings smooth, and critical apps running without unexpected slowdowns. For companies that need a steady, low-latency connection without relying on the unpredictability of the public internet, MPLS delivers.

Big networks, big decisions

Companies with multiple locations need a network that feels the same no matter where you are. MPLS makes that happen by providing consistent performance across all sites. The catch? The farther your data has to travel, the more expensive it gets. If your business spans continents, the price tag can climb fast.

Security that keeps traffic private (but not encrypted)

MPLS keeps your data off the public internet, which means fewer congestion issues and less risk of outside interference. But don’t mistake that for full-on security—MPLS doesn’t encrypt your data. If you’re dealing with sensitive information, pairing it with a VPN or another encryption method is a must.

Stability or flexibility—what matters more?

MPLS locks in routes, prioritizes critical traffic, and keeps things steady. But all that control comes at a cost—literally. As we've discussed, it's usually more expensive than SD-WAN, which offers more flexibility and cost savings by using multiple internet connections instead of private circuits. If your business values adaptability over guaranteed performance, SD-WAN could be the better fit.

Managing MPLS doesn’t have to be a pain

Setting up and maintaining an MPLS network takes some work, but that doesn’t mean your IT team has to do all the work. Meter’s managed MPLS solutions handle the setup, monitoring, and optimization, so your business gets the benefits without the issues.

Integrate technologies with Meter Connect

Meter Connect gives you a secure, scalable MPLS circuit that grows with your business. But we don’t just hand you a connection and disappear. Our team is there for ongoing support, so you’re never stuck troubleshooting on your own.

We take it a step further with vertically integrated networks, handling maintenance, monitoring, and optimizations. That means your IT team spends less time dealing with network issues and more time focusing on what really matters.

With Meter, you’re not just getting an MPLS circuit—you’re getting a partner that adapts to your needs and keeps your business running at full speed. 

Request a quote from us today on Meter Connect.